Journal of Internet Banking and Commerce
Vol 14 No. 1 (April 2009)
http://www.arraydev.com/commerce/jibc/current.asp

======================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2009-04/0905-Publ_PDFVersion.pdf
======================

IFRS – Call for the Case Studies 
 
Financial accounting is essential when establishing effective Internet
commerce, banking and payments.  From being treated in the past as an
administrative overhead, online accounting now emerges as a critical enabler for
ecommerce profitability and sustainability. 
 
Nowhere the new accounting dynamics is more apparent than in the introduction of
International Financial Reporting Standards (IFRS) – a compelling accounting
framework that currently (with the notable exception of the US) substitutes
Generally Accepted Accounting Principles (GAAP) in most developed and developing
countries. 
 
I live in Canada, where IFRS introduction at the key private and public
sector organizations in 2010-11 will definitely affect the jobs of professional
accountants. Our country is somewhat more litigation-driven than Europe and
South East Asia, but still less so than the US.  Hence, IFRS commencement will
likely result in substantial repercussions for the CEOs and other Non-Financial
Executives. 
 
It would be interesting to learn from the JIBC authors and readers how this
new 
accounting framework affects their organizational reporting, executive
accountability and 
operational transparency.  Please send us results of your research and case
studies 
from around the globe that illuminate the critical differences in the new
IFRS financial 
statements compared to that produced under the old GAAP. 
 
 
Change of Conference Dates 
 
Due to some serious concerns with the potential attendance during the summer
vacation 
time, and to ensure good health environment, the International Conference
on 
eCommerce and ePayments in Marrakech, Morocco will take place on September 
25-27, 2009. (see http://www.icep.educasphere.com/index.php).  The
conference has 
been organized by SIST (www.sist.ac.ma), a Middle Eastern centre of
University of 
Sunderland in the UK (President Dr. Tariq Obaid), as well as Educasphere 
(www.educasphere.com), a Moroccan corporation specializing in conferences, 
consultancy and student orientation (Director Abdellatif Mazouz).  Editorial
Committee 
consists of JIBC Chief Editor Prof. Nikhil Agarwal, Dr. Jean-Michel Sahut,
Director of 
Research Center, Amiens School of Management, France and Prof. Jay Mitra,
Associate 
Director and Head of Entrepreneurship and Innovation Group, Essex Business
School.  
For Call for Papers see http://www.icep.educasphere.com/programme.php 
 
Every ebanking and ecommerce academic and graduate student should consider
a 
presentation – or at least active participation – at this important and
quite interesting 
conference.  It looks quite promising both in its high intellectual
potential and as a 
gateway to the Middle Eastern ecommerce/ebanking marketplace.  For
executives and
practitioners, it might also mean an opportunity to turn around their own
professional 
fortunes as well as finding the new ways to prosper for their corporations. 
The 
Marrakesh venue is the world renown as a city of immense beauty, friendly
charm and 
vivid activity. 
 
The ICeP'09 Program Committee would much appreciate it if you distribute
this 
announcement to all your colleagues and friends that might be interested in
participating, 
as well as to the lists and blogs that you might run or take part at. 
 
 
Again, I am asking each and every one of you, our readers and subscribers,
to email 
JIBC to at least 3 of your colleagues, friends and discussion groups that
you are 
participating at, and recommend that they also subscribe.  Please share
information 
about JIBC articles with the Internet community and suggest to us new ways
to promote 
JIBC among academics and professionals from around the globe. 
 
As well, I am challenging all the current and past authors and editors to
email your own 
articles -- along with the rest of JIBC edition -- to at least 10 of your
peers and 
colleagues in academia, government and industry.  Make sure that they are
well aware of
your articles and the Journal of Internet Banking and Commerce.  Recommend
that 
they also subscribe to email editions.  After all, we send it around just
3-4 times a year. 
 
A special appeal to ecommerce/ebusiness students to pass a word about JIBC
to your 
professors and classmates and, more important, to ask them to supply new
articles and 
tell everybody to subscribe.  
 
Please contact us with the suggestion of how to submit information on JIBC
to other 
leading search engines and academic reference publications.  Also, if you
notice 
publications referring to JIBC articles, please let us know. 
 
Let's spread the word! 


======================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2009-04/EditorialNote.doc
======================

Two important events which took my attention recently. The first was
probably called most
honest effort to bring the people together. Other can be called to
cut-the-bridge of
communication.

The recent speech of President Obama to the Muslim world can be considered
to be one of
the most important speeches in our recent times. The speech clearly defines
that human
beings cannot exists in isolation, we need to communicate, collaborate and
come together
to create the world for tomorrow. I must congratulate President Obama for
making such
important statement. 

On different note, we have believed Internet is bringing us together &
closer. The recent
developments on IPv9 [parallel internet] by China working on opposite
directions. China's
stance will defy the very meaning of Internet and it would start the sort of
race among
the countries to start their own internet protocols & standards. We at JIBC
believes in
the unity of the internet in its current format.

As we have announced in our previous issue, the dates for the Morocco
conference has been
changed to September 2009. JIBC is pleased to announce our association with
`International Conference on eCommerce and ePayments 09' at Marrakech,
Morocco 24-26 July
2009. The call for papers and complete information about the conference
including themes,
tracks, visitor information is available on the conference website
http://www.icep.educasphere.com/ . I am sure it would be great intellectual
gathering
giving different perspective on MENA region financial markets. JIBC would
organize a
special issue in December 2009 to include the selected papers from IEC09. 
We invite you
to write submit papers for Morocco conference. Hope to see you all there.

In our current issue we have 14 strong papers representing all human-living
continents
(African, Europe, Americas, South America and Asia). JIBC has become a solid
international platform which can organize such a large audience across the
continents.
The popularity of JIBC is emerging day-by-day, which, I must thank to our
authors,
readers & editors for their efforts. 

I invite you all to further explore the April 2009 issue of JIBC.

Nikhil Agarwal

Participate at the International Conference on eCommerce and ePayments
in Marrakech, Morocco, 25th -27th Sept 2009
http://www.icep.educasphere.com/index.php

For Call for Papers and Panels please see
http://www.icep.educasphere.com/userfiles/Call_4_papers_icep09.pdf


=================================
PEER REVIEWED RESEARCH PAPERS
=================================

BRAZIL: Supporting Services Functionality in Brazilian Sectors: The Primacy
of Banks
(By Marcos Antonio Gaspar, Carlo Gabriel Porto Bellini, Denis Donaire and
Silvio
Aparecido dos Santos)
http://www.arraydev.com/commerce/jibc/2009-04/Gaspar.pdf

E-commerce can benefit companies by enabling new business models, improving 
efficiencies, and building competitive advantages. But there are some
critical issues to 
be addressed in order to achieve those benefits, and one of them relates to
the 
effectiveness of online customer servicing in e-commerce, also referred to
as supporting 
services functionality (SSF). In this paper we discuss a subset of SSF in
110 large 
Brazilian companies representing 11 key sectors of the economy. Results
enabled the 
ranking of sectors according to levels of SSF effectiveness, and the
conclusion was that 
the nature of business may explain why general banks and telecommunications 
companies currently perform the better, while siderurgy and metallurgy,
wholesale and 
international commerce, and chemical and petrochemical companies have the
lowest 
performance in implementing the tools for customer support in e-commerce. 


FRANCE: The Impact of the Internet on Pricing Strategies in the Tourism
Industry
(By Jean-Michel Sahut and Lubica Hikkerova)
http://www.arraydev.com/commerce/jibc/2009-04/eTourismeJIBC 20240209 .pdf

The Internet has had a dramatic effect on the distribution of tourism
products. The 
reintermediation which has taken place has led all distributors to implement
more 
dynamic pricing strategies from the widespread use of Yield Management (YM)
practices
to price discount strategies. The Internet also influences the consumers'
perception of 
pricing strategies. Consumers are increasingly aware of YM practices and the
Internet 
has become the essential tool for finding the best price. However, there
continues to be 
a certain disconnect between the channels used for searching for the best
price 
available and those used by the clientele of luxury hotels in France to make
their 
booking. Indeed, the telephone still dominates for this type of clientele
when carrying out 
this type of transaction as they find it easier to use, it is entrenched in
their habits and is 
perceived as being more secure. 


INDIA: A Secured Hybrid Architecture Model for Internet Banking (e-Banking)
(By Ganesa R and Vivekanandan K.)
http://www.arraydev.com/commerce/jibc/2009-04/JIBC-Ganesan R.pdf

Internet banking has made it easy to carry out the personal or business
financial 
transaction without going to bank and at any suitable time. This facility
enables to 
transfer money to other accounts and checking current balance alongside the
status of 
any financial transaction made in the account. However, in order to maintain
privacy and 
to avoid any misuse of transactions, it is necessary to follow a secured
architecture 
model which ensures the privacy and integrity of the transactions and
provides 
confidence on internet banking is stable. In this research paper, a secured
hybrid 
architecture model for the internet banking using Hyperelliptic curve
cryptosystem and 
MD5 is described. This hybrid model is implemented with the hyperelliptic
curve 
cryptosystem and it performs the encryption and decryption processes in an
efficient 
way merely with an 80-bit key size. The various screen shots given in this
contribution 
shows that the hybrid model which encompasses HECC and MD5 can be considered
in 
the internet banking environment to enrich the privacy and integrity of the
sensitive data 
transmitted between the clients and the application server.  


KOREA: Determinants Affecting User Satisfaction with Campus Portal Services
in Korea
(By Hyung Seok Lee, Yoon Hyung Choi, and Nam Ok Jo)
http://www.arraydev.com/commerce/jibc/2009-04/Lee et al._081129 20JIBC.pdf

Campus portals have attracted a great deal of interest among universities,
as they are 
considered a source of competition superiority. This is because universities
wish to 
project the impression that they offer the most convenient service and excel
in the field 
of Information Technology—this allows them to attract superior students. The
increase in 
the number of universities currently offering campus portal services, and
assessments of 
user satisfaction with these services, are increasingly recognized as
important research 
subjects.  
 
This study assesses the relationships between end-user satisfaction with
campus portal 
services, and the degree of influence of this factor. In this study, user
satisfaction with 
campus portal services was determined by assessing end user satisfaction
factors, in 
accordance with the method developed previously by Doll and Torkzadeh.
Additionally, 
usability, playfulness, design, and support service were established as
preceding factors 
influencing user satisfaction.  
 
The results of this study showed that user ability, playfulness, design, and
support 
service influence user satisfaction. This study is meaningful in that it
provides 
information and matters for consideration regarding the improvement and
maintenance 
of campus portal services.  

MALAWI: Mobile Opportunities, Mobile Problems: Assessing Mobile Commerce
Implementation
Issues in Malawi
(By Edwin Saidi)
http://www.arraydev.com/commerce/jibc/2009-04/Saidi.pdf

The increased usage of mobile phones and the rapid developments in mobile 
communication technologies present a surge for m-commerce. While m-commerce
has 
been implemented in many countries in both the developed and developing
world, it 
remains an unexploited area in some African countries, including Malawi.
This paper 
investigates the problems that Malawi could face in the implementation of
m-commerce 
and the stakeholders to drive m-commerce implementation in the country. The
research 
has established that banks, mobile phone operators and the central bank,
among other 
institutions, are the key stakeholders to play a leading role in the
implementation of
m-commerce in Malawi. The paper has further identified a number of possible
m-commerce
applications in the country including m-banking, m-shopping and m-health.  
 
However, the implementation of these applications will face technical,
business and 
policy problems. These have been discussed and analyzed. The results of the
research 
are expected to help in directing the focus of researchers, policymakers,
technical 
implementers, service providers and other stakeholders, as Malawi joins the
race for 
mobile payment systems.  

MALAYSIA: The Effect of Perceived Risk on the Intention to Use e-Commerce:
The Case
of Algeria
(By Zakariya Belkhamza and Syed Azizi Wafa)
http://www.arraydev.com/commerce/jibc/2009-04/Belkhamza_JIBC.pdf

Despite the recent economic downtown in the Internet and ICT sectors,
legitimate 
concerns regarding privacy and trust remain obstacles to growth and
important issues
to both individuals and organizations. Studies on the adoption of
business-to-consumer
e-commerce have not simultaneously considered trust and risk as important
determinants
of adoption behavior. The conceptual model of this study leads us to believe
that system
risks of e-commerce are the major determinants of the adoption behavior.
Based on
technology acceptance model (TAM), this study aims to investigate the effect
of 
perceived system risk on the behavioral intention of tourism organizations
to use
e-commerce. This research is expected to provide both theoretical
explanations and 
empirical validation on the adoption of e-commerce, and offer clear
explanation and 
recommendations for business organizations as well as e-commerce systems
providers, 
regarding the adoption of e-commerce and the risk and security issues. 

MALAYSIA: Cyber Cafe Usage in Malaysia An Exploratory Study
(By Syed Shah Alam, Zaini Abdullah and Nilufar Ahsan)
http://www.arraydev.com/commerce/jibc/2009-04/Final cyber cafe-
JIBC_final.pdf

Using empirical and new field data, this exploratory study investigates the
pattern of the
use of cyber cafes in two cities in Malaysia. The research was based on the 
convenience sample survey of 284 respondents in total in the two cities,
Melaka and Miri 
in Sarawak. It can be argued that cyber café seeks to provide its customers
with 
inexpensive Internet access in a comfortable environment. People of all ages
and sex 
come to enjoy the unique, upscale, educational, and innovative environment
at cyber 
cafe. This study investigates the rate of usage of cyber café by the
respondents. The 
results of our study and the implication for future research are discussed. 

MALYASIA: Cyberculture: Impact on Netizen
(By Chai Lee Goi)
http://www.arraydev.com/commerce/jibc/2009-04/GOI-JIBC.pdf

Macek (2004) highlighted a typology of current concepts of cyberculture.
Four different 
concepts were identified, which are spans utopian, information,
anthropological and 
epistemological concepts of cyberculture. Macek (2004) also highlighted four
different 
periods of the cyberculture and its impacts on netizen. The very first
foundations of 
cyberculture originate at the Massachusetts Institute of Technology (M.I.T.)
at the turn of
the 1950s and the 1960s. Early cyberculture reached its peak in the late
1970s and in 
the 1980s. Early cyberculture originates in the American hackers'
subcultures. The 
second period of cyberculture can be broadly set to the 1970s and the
beginning of the 
1980s. The beginning of the third period was characterised by a significant 
transformation at all the levels of early cyberculture, a shift that was
related to the 
accelerated spread of microcomputers and to the development of public
computer 
networks. The fourth period begins at the end of the 1980s and ends in about
the middle 
of the 1990s.  

MALAYSIA: Taxpayers' Attitude in Using e-File System: Is There Any
Significant Difference
Among Demographic Factors?
(By Azleen Ilias, Mohd Zulkeflee Abd Razak and Mohd Rushdan Yasoa)
http://www.arraydev.com/commerce/jibc/2009-04/JIBCArticle_Azleen.pdf

This study employs the Technology Acceptance Model (TAM) to examine
taxpayers' 
attitude in using e-Filing system. Data are collected from taxpayers in
three higher 
learning institutions in Labuan F.T. The purpose of this study is to examine
the 
differences of taxpayers' attitude to use e-filing among gender, level of
education, 
experience of handling and learning the system. Besides, this study also
examines the 
relationship between taxpayers' attitudes and perceived usefulness,
perceived ease of 
use, information system quality, information quality and perceived
credibility. The result 
shows significant differences among experience and non-experience taxpayers
in 
handling and learning e-filing system. Education background of taxpayers has
also 
played an important role in encouraging the attitude of taxpayers to use
e-filing. However,
the gender of taxpayers provides no difference in terms of their attitude in
using and 
applying the system. In addition, this study found strong relationship
between attitude 
and TAM determinants namely perceived usefulness, perceived ease of use,
information 
system quality, information quality and perceived credibility. The
implication of this study
suggests that Inland Revenue Board (IRB) should increase and strengthen
their 
awareness program to educate non-experience taxpayers so that it will
simultaneously 
improve the attitude of taxpayers to use this electronic system.  

NIGERIA: Customers Perception of Security Indicators in Online Banking Sites
in Nigeria
(By Egwali Annie Oghenerukeybe)
http://www.arraydev.com/commerce/jibc/2009-04/Egwali.pdf

Internet banking provides alternatives for faster delivery of banking
services to a wider 
range of customers. The increasing popularity of Internet banking, have
attracted the 
attention of both legitimate and illegitimate online banking practices. 
Customers are 
liable to criminal activities, fraud, thefts and various other threats of
similar nature. 
Criminals focus on stealing user's online banking credentials because the
username and 
password combination is relatively easy to acquire and then relatively easy
to use to 
fraudulently access an Internet banking account and commit financial fraud.
To alert 
users, many banking sites are now including Security Indicators (SI) to
their sites. This 
paper describes a user study performed to investigate user's perception of
factors 
influencing the effective implementation of existing SI objectives and to
evaluate the 
effectiveness of SI in banking web browsers using the Communication-Human
Information
Processing Model (C-HIP) model, a model proposed by Wogalter in 2006 in 
the field of warning sciences. Findings revealed that SI are not very
effective at alerting 
and shielding users from revealing sensitive information to spoofed sites.
These 
outcomes may help the management of banks develop effective security
strategies for 
the future of electronic banking in Nigeria.  

TURKEY: Changing Face of Banks and the Evaluation of Internet Banking in
Turkey
(By Bora Aktan, Edip Teker and Pervin Ersoy)
http://www.arraydev.com/commerce/jibc/2009-04/Submitted Manuscript for JIBC-
FEB 2009.pdf

Banking historically has been a sector based on individual or institutional
client service. 
In today's browser-based competitive finance world, banks need to flourish
this client 
service viewpoint with web-empowered features for keeping clients and
attracting 
prospective ones. Internet has emerged as a key competitive field for the
future of 
financial services. In a sense, it is almost synonymous with change. Banks,
especially 
commercial ones, are swiftly becoming more aware of the importance of
internet banking 
in this era. This topic was selected to dilate the current developments and
implications of 
internet banking in Turkey, which has been repeatedly cited as an emerging
market with 
its growing sectors, over the period 2005 and 2008.  


UNITED STATES: Consumers with Sexual Performance Problems and Spam E-mail
for Sexual
Performance Products
(By Joshua Fogel and Sam Shlivko)
http://www.arraydev.com/commerce/jibc/2009-04/Fogel1.pdf

Spam e-mail on sexual health topics arrive in e-mail inboxes.  We study
consumer 
responses to spam e-mail that advertise sexual performance products. 
Participants 
(n=200) with and without sexual performance problems were asked if they
received, 
opened, and bought products from spam e-mail about sexual performance
products in 
the past year.  Comparisons were performed between those with and without
sexual 
performance problems.  Psychological factors of self esteem and perceived
stress were 
measured. Those with sexual performance problems had significantly greater 
percentages than those without sexual performance problems for receiving
(100.0% 
versus 73.5%, p=0.024), opening (66.7% versus 11.4%, p<0.001), and
purchasing 
products (46.7% versus 5.4%, p<0.001) from spam e-mail.  In the multivariate
logistic 
regression analyses adjusting for demographics, psychological factors, and
attitudes, 
those with sexual performance problems were significantly associated with
opening (OR: 
8.33, 95% CI: 1.95, 35.71), and purchasing products (OR: 7.98, 95% CI: 1.74,
36.73) 
from spam e-mail. Spam e-mail about sexual performance products are opened
and 
purchased from, especially among those with sexual performance problems. 
There is a 
need for e-mail marketing and advertising of sexual performance products
that meet 
ethical standards for e-mail delivery to consumers. 

UNITED STATES: An Experimental Investigation of Online Banking Adoption in
China
(By Guangying Hua)
http://www.arraydev.com/commerce/jibc/2009-04/Online%20Banking_GHua.pdf

Online banking, an Internet based service enabling people to do financial
transactions, 
has been an obstacle for the development of e-commerce in China. This paper 
investigates the online banking acceptance in China. We conducted an
experiment to 
investigate how users' perception about online banking is affected by the
perceived ease 
of use of website and the privacy policy provided by the online banking
website. We find 
that both perceived ease of use and privacy policy have a significant impact
on user's 
adoption of online banking. In this study, we also investigate the relative
importance of 
perceived ease of use, privacy, and security. Perceived ease of use is of
less 
importance than privacy and security. Security is the most important factor
influencing 
user's adoption. A discussion of the implications of these results and
limitations are 
provided at the end. 

ZIMBABWE: Adoption and Use of Internet Banking in Zimbabwe: An Exploratory
Study
(By Dube Thulani)
http://www.arraydev.com/commerce/jibc/2009-04/Dube etal.pdf

This paper sought to explore the extent of adoption and usage of internet
banking by 
commercial banks in Zimbabwe as well as investigate the challenges they face
in the
adoption of this technology.  An exploratory research design was used to
achieve the 
envisaged aims of the study. Overall, the results showed that while the
majority of the 
banks in Zimbabwe have adopted internet banking, usage levels have remained 
relatively low, as not many customers are using this innovation in Zimbabwe.
Regarding 
the challenges faced by banks in the adoption of IB, compatibility with
existing legacy 
systems, cost of implementation and security concerns ranked high. The
implications of 
the study are that banks in Zimbabwe should vigorously promote the usage of
IB among 
customers while policy makers such as the Government and the Reserve Bank
of 
Zimbabwe should increase investments targeted at infrastructure development
so as to 
encourage banks and individuals alike to adopt the innovation. 


=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and
electronic commerce professionals and executives on principal
developments, benchmark practices, and future trends in the Internet-
based marketing practices of governments and industry. This free
online interactive journal is a way to keep in touch, to share
information, and to establish business contacts (networking) for
worldwide professionals that specialize in electronic commerce,
governance and banking solutions.

In JIBC you will find informed discussion of the latest Internet-
based banking and electronic trends and practices from around the
world. Our priority is quality, not quantity. We want to maintain
JIBC as a service that provides substantial information and an
effective forum for your articles, your letters, your insights and
ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at:
http://www.ARRAYdev.com/commerce/JIBC/current.asp. All articles are
available for free access and download.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship
of this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions
or comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.

/---------------------CALL FOR PAPERS-------------------\
http://www.icep.educasphere.com/index.php
International Conference on eCommerce & ePayments
Marrakech 25-27 September 2009

ICEP'09 Conference will seeks to establish a vibrant and
constructive global dialogue between senior industry
executives, investors, central bankers, government
policymakers and leading academics on how to radically
improve ecommerce and epayment effectiveness. The
conference will also provide an opportunity for ecommerce
and epayment companies to exhibit their state-of-the-art
services and products at the commercial gateway to the
Middle East.
\---------------------CALL FOR PAPERS-------------------/


=================================
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Please contact us with the suggestion of how to submit information on
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=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Editor-in-Chief: Nikhil Agarwal

Deputy Editor-in-Chief: Joshua Fogel

Founding Chief Editor Emeritus and Member of the Editorial Board:
Gord Jenkins

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
South America Contributing Editor: Carlo G. P. Bellini
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell

Please send any questions related to maintenance of this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce Vol. 13 No. 3 December 2008
http://www.arraydev.com/commerce/jibc/current.asp

======================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2008-012/0812-
Publ_PDFVersion.pdf
======================

Overcoming the Recession

Just repeating ad nausea that the situation is really bad today, and
it is the end of the financial world as we know it, leads us all
nowhere fast.  The new economic paradigm is just around the corner.
Unrivaled opportunities will welcome these bold souls who can foresee
and actively participate in the creation of innovative solutions.

Inevitably, the foundation of this new financially-viable paradigm
will not be built on the protectionist measures.  Rather, it will be
global in substance, regulation-driven in its structure and multi-
polar in geography.  Our informal subject cluster, consisting of the
editors, authors and readers of the Journal of Internet Banking and
Commerce, is most likely to emerge at the forefront of the new global
vision that will define the innovative financial, banking and
ecommerce regional and national agenda. IBC fully recognizes the
inherent worldwide diversity of the new economic order and would like
to proactively and pragmatically contribute to the formulation this
new business vision.  Undoubtedly, one of the significant new
financial and ecommerce poles will be the emerging economies of the
Middle East.

Led by our intrepid Chief Editor Prof. Nikhil Agarwal, we have
combined the forces with SIST (www.sist.ac.ma), a Middle Eastern
centre of University of Sunderland in the UK (President Dr. Tariq
Obaid), as well as with Educasphere (www.educasphere.com), an upbeat
Moroccan corporation specializing in conferences, consultancy and
student orientation (Director Abdellatif Mazouz).

The resulting International Conference on eCommerce and ePayments in
Marrakech, Morocco, 24-26 July 2009
http://www.icep.educasphere.com/index.php, which I have a privilege
to chair, promises to transpire among the earliest and most
significant milestones in redefining the new financial and ecommerce
paradigm.  Prominent experts Dr. Jean-Michel Sahut, Director of
Research Center, Amiens School of Management, France and Prof. Jay
Mitra, Associate Director and Head of Entrepreneurship and Innovation
Group, Essex Business School, have agreed to join Prof. Agarwal at
the Conference Program Committee.  For Call for Papers and Panels
please see
http://www.icep.educasphere.com/userfiles/Call_4_papers_icep09.pdf.

Every ebanking and ecommerce academic and graduate student should
consider a presentation – or at least active participation – at this
important and quite interesting conference.  It looks quite promising
both in its high intellectual potential and as a gateway to the
Middle Eastern ecommerce/ebanking marketplace.  For executives and
practitioners, it might also mean an opportunity to turn around their
own professional fortunes as well as finding the new ways to prosper
for their corporations.  The Marrakesh venue is the world renown as a
city of immense beauty, friendly charm and vivid activity.

I would also much appreciate it if you can distribute this
announcement to all your colleagues and friends that might be
interested in participating, as well as to the lists and blogs that
you might run or take part at.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe.  Please share information about JIBC
articles with the Internet community and suggest to us new ways to
promote JIBC among academics and professionals from around the globe.

As well, I am challenging all the current and past authors and
editors to email your own articles - along with the rest of the JIBC
edition - to at least 10 of your peers and colleagues in academia,
government and industry. Make sure that they are well aware of your
articles and the Journal of Internet Banking and Commerce. Recommend
that they also subscribe to email editions. After all, we send it
around just 3-4 times a year.

A special appeal to ecommerce/ebusiness students to pass a word about
JIBC to your professors and classmates and, more important, to ask
them to supply new articles and tell everybody to subscribe.

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and academic reference
publications.  Also, if you notice publications referring to JIBC
articles, please let us know.

Let's spread the word!

/---------------------CALL FOR PAPERS-------------------\
http://www.icep.educasphere.com/index.php
International Conference  on eCommerce & ePayments
Marrakech 24-26 July 2009

ICEP'09 Conference will seeks to establish a vibrant and
constructive global dialogue between senior industry
executives, investors, central bankers, government
policymakers and leading academics on how to radically
improve ecommerce and epayment effectiveness.  The
conference will also provide an opportunity for ecommerce
and epayment companies to exhibit their state-of-the-art
services and products at the commercial gateway to the
Middle East.

The Conference topics are:
1) Overcoming the global financial crisis through the
expansion of ecommerce/epayments (The Marrakech
Round)
2) Profitability, governance, regulations and
compliance
3) Solutions and barriers to ecommerce and
epayments
4) Global infrastructure and the developing
countries – a lever or a hindrance?
\---------------------CALL FOR PAPERS-------------------/


======================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2008-12/EditorialNote.pdf
======================
The new year, new administration, new hope ... new recession. The
year 2009 has lot to deliver and probably it would be become one of
the most memorable year in the current century. As our publisher
Nahum Goldmann has said in his note, beating the bush will not lead
us to anywhere. We have to find the greens in the desert, sooner we
do it, better for economy. For instance, the green in the desert may
be Asian economies like India who is poised to grow by 7.1% despite
of the slowdown. The renewed thinking on investments in the
developing economy in core sectors may balance the growth rate world-
wide. It is said by one of the thinkers, `Road is long, keep
walking'.

JIBC is pleased to announce our association with `International
Conference on eCommerce and ePayments 09' at Marrakech, Morocco 24-26
July 2009. The call for papers and complete information about the
conference including themes, tracks, visitor information is available
on the conference website http://www.icep.educasphere.com/ . I am
sure it would be great intellectual gathering giving different
perspective on MENA region financial markets. JIBC would organize a
special issue in August/September 2009 to include the selected papers
from IEC09.

In this issue we are papers from 3 different continents and 6
different countries. Egwali in his article talks about customer
perception of security indicators for online banking websites in
Nigeria. In another article from Nigeria Tella & Paul gives overview
of problems & suggest the way forward for SMEs participation in
electronic economy. Christos in his article has given a comprehensive
commentary of internet banking website performance in Greece.

Our regular contributor Hanudin writes on prospects & challenges of e-
business from Islamic perspectives in Malaysia. In other interesting
article from France Sebastian, Vincent and Luc gives a qualitative
analysis of different models of e-commerce performance and suggested
a global theory based on their findings. Michael & Yair from USA
gives an empirical assessment of banking information system (BIS) in
Jamaica.

In another article, Wee Kheng, has done a market study on Taiwanese
market on the factors affecting non bank-issued POS e-micropayment
choice. There are very few studies available on Taiwanese market,
therefore, this article is a must read. Yazan in continuation of the
article from previous issue talk about the quality of internet
banking service in Jordan.

As always your views are important to us, feel free to write to me
sharing your experience about JIBC. I look forward meeting you in
Morocco in July.

Nikhil Agarwal

Participate at the International Conference on eCommerce and
ePayments in Marrakech, Morocco, 24-26 July 2009
http://www.icep.educasphere.com/index.php

For Call for Papers and Panels please see
http://www.icep.educasphere.com/userfiles/Call_4_papers_icep09.pdf


=============================
PEER REVIEWED RESEARCH PAPERS
=============================

CANADA: Strategies for Increased Integration of Online and In-Branch
Services of Banks in Canada (By Jason Dong and Michael Bliemel)
http://www.arraydev.com/commerce/jibc/2008-12/Dong-Bliemel-JIBC.pdf

Over the last decade there has been rapid growth of Online Banking.
This research examines the benefits of Online Banking and how
Canadian Banks accommodate various financial activates through
different service channels, including Online, telephone, ABM and in-
branch.  A Framework is introduced for categorizing the most common
activities by their need for physical interaction and assistance and
to align activities with their ideal service channel. This research
is concluded with the presentation of strategies for integrating
these different customer channels.


FRANCE: The Piloting of E-Commerce Performance: Development of a
Model of Assistance to Piloting by Objectives (By Sebastien Bruyere,
Vincent Pillet and Luc Quoniam)
http://www.arraydev.com/commerce/jibc/2008-12/JIBC_Pilotage_e-
commerce-En.pdf

In France, with more than 19 billion Euros of production figures in
2007 (Source: Acsel), there is a significant boom in the e-shopping
sector. Proof lies also in the results of the first trimester of
2008, showing that the results are better than those the years
before.

Many businesses decide to expand on their work by creating and
setting up their own boutiques on line, but however quite quickly,
the problem lies in the evaluation of the return of investments,
analyses of performances of the website and the evaluation of
results.  In able to do this, examples concerning the performance
were established revealing the web indicators to follow in order to
reach the strategic objectives qualified upstream. But these types of
model have often been mixed together; certain have different vectors
of communication and others simply have the indicators of Web
Analytics. Coming from the protocol, we managed to produce a
qualitative analysis of different models in order to establish a
model of global theory.

MALAYSIA: E-Business from Islamic Perspectives: Prospects and
Challenges (By Hanudin Amin)
http://www.arraydev.com/commerce/jibc/2008-12/Hanudin_Final__JIBC.pdf

This paper aims to examine e-business from Islamic perspectives.
Among topics to be addressed in this paper, are e-business concepts,
the legality of e-business from an Islamic point of view, prospects
and challenges of Islamic e-business in a Malaysia context. This
study introduces an Islamic e-business concept in addition to some
interesting issues that can be found in this paper. In Islam, e-
business is a permissible means of doing business provided it is
performed in the boundary of Shariah Islamiyyah. More importantly,
Islamic e-business provides services as permitted in the religion of
Islam, in which they are deceit-free transactions and also free from
gharar in a business transaction. All in alland challenges.


NIGERIA: Customers Perception of Security Indicators in Online
Banking Sites in Nigeria (By Egwali Annie Oghenerukevbe)
http://www.arraydev.com/commerce/jibc/2008-12/Egwali.pdf

Internet banking provides alternatives for faster delivery of banking
services to a wider range of customers. The increasing popularity of
Internet banking, have attracted the attention of both legitimate and
illegitimate online banking practices.  Customers are liable to
criminal activities, fraud, thefts and various other threats of
similar nature.
Criminals focus on stealing user's online banking credentials because
the username and password combination is relatively easy to acquire
and then relatively easy to use to fraudulently access an Internet
banking account and commit financial fraud. To alert users, many
banking sites are now including Security Indicators (SI) to their
sites. This paper describes a user study performed to investigate
user's perception of factors influencing the effective implementation
of existing SI objectives and to evaluate the effectiveness of SI in
banking web browsers using the Communication-Human Information
Processing Model (C-HIP) model, a model proposed by Wogalter in 2006
in the field of warning sciences. Findings revealed that SI are not
very effective at alerting and shielding users from revealing
sensitive information to spoofed sites. These outcomes may help the
management of banks develop effective security strategies for the
future of electronic banking in Nigeria.


NIGERIA: Nigeria's SMEs Participation in electronic Economy: Problems
and the Way Forward (By Paul Adesole Adekunle and Adeyinka Tella)
http://www.arraydev.com/commerce/jibc/2008-12/JIBCArticleTemplate-
Tella.pdf

For both developing and developed countries, small and medium scale
firms play important roles in the process of industrialization and
economic growth. Apart from increasing per capita income and output,
Small and Medium Scale Enterprises (SMEs) create employment
opportunities, enhance regional economic balance through industrial
dispersal and generally promote effective resource utilization
considered critical to engineering economic development and growth.

The development of SMEs is seen as accelerating the achievement of
wider economic and socio-economic objectives, including poverty
alleviation. Unleashing its influence on the way traditional business
is conducted hitherto is the phenomenon of electronic commerce (e-
commerce). The Internet through its reduction in distance-related
costs is seen by many as a potential source of economic
revitalization. This Internet economy has continued to grow at an
unprecedented rate.

Thus, this paper focused on the extent of Nigerian's SMEs
participation in this Internet economy. This will be achieved by
considering the conceptual framework of Internet/electronic economy,
some applications of Internet/electronic economy, Nigeria SME
participation in electronic economy, the benefits and limitations of
electronic economy in general, the problems hindering Nigeria SMEs'
participation in electronic economy and finally pointing out the way
forward.


REPUBLIC OF CHINA (TAIWAN): Factors Affecting Non Bank-Issued POS E-
Micropayment Choice: A Study of Taiwan Market (By Wee Kheng Tan and
Shih Kuo Chen)
http://www.arraydev.com/commerce/jibc/2008-12/TAN.pdf

In Taiwan, organizations with existing captive markets, that is,
transport-related companies and convenience stores, have issued their
own non bank-issued POS e-micropayment programs and achieved good
success. Due to legal restriction imposed on non bank-issued
programs, Taiwan's market has evolved further resulting in two major
categories: non bank-issued programs and bank-issued programs.
Through an extended Post-acceptance Model of IS Continuance which
incorporated network externality, we examined the factors which
influenced users to continue using non bank-issued programs and the
impact of bank-issued programs on the development of non bank-issued
programs.  Our study found that perceived usefulness, satisfaction of
users and the demand side of network externality directly affected
users' intention to continue using the program. The study also showed
how external factors in Taiwan such as regulatory restriction and
retail structure have affected programs' development.


UNITED KINGDOM: Internet Banking Websites Performance in Greece (By
Christos Fioros)
http://www.arraydev.com/commerce/jibc/2008-12/FLOROS.pdf

Research studies have paid no sufficient attention in examining the
performance of internet banking (IB) websites. This paper examines
factors such as the reach percentage (real users), the traffic rank
and the number of web pages viewed (per IB user per day). The main
objective of this paper is to explain the performance of Greek IB
websites in 2008. The results show that only large Greek banks show
high average statistics. However, their statistics are low compared
to other European banks.


UNITED KINGDOM: The Quality of Internet Banking Service Encounter in
Jordan (By Yazan K. A. Migdadi)
http://www.arraydev.com/commerce/jibc/2008-12/Yazan_2.pdf

The purpose of this study is to identify the quality of internet
banking service encounter of the retail banks in Jordan, and to
identify the quality dimensions that should be improved or sustained,
to achieve these purposes the banks' web sites were evaluated by
using the web site quantitative evaluation method (QEM), the
evaluation of the banks' web sites was conducted in March 2008 for
sixteen retail banks in Jordan, the results indicated that; the banks
in Jordan have significant positive quality of the internet banking
service encounter, further the banks' web sites are rich in their
content, and significant in the navigation, but the speed of home
page down load and web site accessibility should be developed in the
future.


UNITED STATES: Integrating Trust and Computer Self-Efficacy with TAM:
An Empirical Assessment of Customers' Acceptance of Banking
Information Systems (BIS) in Jamaica (By Michael Reid and Yair Levy)
http://www.arraydev.com/commerce/jibc/2008-12/Levy_JIBCformat.pdf

Financial institutions all over the world are providing banking
services via information systems, such as: automated teller machines
(ATMs), Internet banking, and telephone banking, in an effort to
remain competitive as well as enhancing customer service.
However, the acceptance of such banking information systems (BIS) in
developing countries remains open. The classical Technology
Acceptance Model (TAM) has been well validated over hundreds of
studies in the past two decades. This study contributed to the
extensive body of research of technology acceptance by attempting to
validate the integration of trust and computer self-efficacy (CSE)
constructs into the classical TAM
model. Moreover, the key uniqueness of this work is in the context of
BIS in a developing country, namely Jamaica. Based on structural
equations modeling using data of 374 customers from three banks in
Jamaica, this study results indicated that the classic TAM provided a
better fit than the extended TAM with Trust and CSE. However, the
results also indicated that trust is indeed a significant construct
impacting both perceived usefulness and perceived ease-of-use.
Additionally, test for gender differences indicated that across all
study participants, only trust was found to be significantly
different between male and female bank custom research are also
provided.

/---------------------CALL FOR PAPERS-------------------\
http://www.icep.educasphere.com/index.php
International Conference  on eCommerce & ePayments
Marrakech 24-26 July 2009

ICEP'09 Conference will seeks to establish a vibrant and
constructive global dialogue between senior industry
executives, investors, central bankers, government
policymakers and leading academics on how to radically
improve ecommerce and epayment effectiveness.  The
conference will also provide an opportunity for ecommerce
and epayment companies to exhibit their state-of-the-art
services and products at the commercial gateway to the
Middle East.
\---------------------CALL FOR PAPERS-------------------/


======================
OPINION ARTICLES
======================

UNITED KINGSOM: Payments and Inclusion: From Branchless Banking to
Bankless Banking (By Dave Birch)
http://www.arraydev.com/commerce/jibc/2008-12/FW_Inclusion.pdf

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=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and
electronic commerce professionals and executives on principal
developments, benchmark practices, and future trends in the Internet-
based marketing practices of governments and industry. This free
online interactive journal is a way to keep in touch, to share
information, and to establish business contacts (networking) for
worldwide professionals that specialize in electronic commerce,
governance and banking solutions.

In JIBC you will find informed discussion of the latest Internet-
based banking and electronic trends and practices from around the
world. Our priority is quality, not quantity. We want to maintain
JIBC as a service that provides substantial information and an
effective forum for your articles, your letters, your insights and
ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at:
http://www.ARRAYdev.com/commerce/JIBC/current.asp.  All articles are
available for free access and download.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship
of this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions
or comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.

/---------------------CALL FOR PAPERS-------------------\
http://www.icep.educasphere.com/index.php
International Conference  on eCommerce & ePayments
Marrakech 24-26 July 2009

ICEP'09 Conference will seeks to establish a vibrant and
constructive global dialogue between senior industry
executives, investors, central bankers, government
policymakers and leading academics on how to radically
improve ecommerce and epayment effectiveness.  The
conference will also provide an opportunity for ecommerce
and epayment companies to exhibit their state-of-the-art
services and products at the commercial gateway to the
Middle East.
\---------------------CALL FOR PAPERS-------------------/


=================================
Listings in Search Engines and Reference Publications
=================================

JIBC Editorial Board strives to list our Journal in leading search
engines and academic reference publications. In particular, JIBC is
well represented in:

- EBSCO Business Source Complete
- EBSCO Business Source Premier
- EBSCO A-to-Z Service
- Scopus
- Wilson Business Periodicals Index
- Wilson Business Abstracts
- Wilson Business Full Text
- Wilson OmniFile Full Text, Mega Edition
- Wilson OmniFile Full Text, Select Edition
- Cabell's Directory of Publishing Opportunities in Economics and
Finance (11th edition)
- Cabell's Directory of Publishing Opportunities in Computer Science
and Business Information Systems (1st edition)
- ABI/INFORM Complete™
- ABI/INFORM Global™
- ABI/INFORM Trade & Industry™
- ABI/INFORM Dateline ™
- ABI/INFORM Archive™
- ABI/INFORM Research™
- ABI/INFORM Select™
- Banking Information Source
- Entrepreneurship
- DOAJ, the Directory of Open Access Journals
- Google search engine
- Yahoo search engine

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and reference publications.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Editor-in-Chief: Nikhil Agarwal

Deputy Editor-in-Chief: Joshua Fogel

Founding Chief Editor Emeritus and Member of the Editorial Board:
Gord Jenkins

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
South America Contributing Editor: Carlo G. P. Bellini
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell

Please send any questions related to maintenance of this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 13 No. 2 August 2008
http://www.arraydev.com/commerce/jibc/current.asp

======================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2008-08/0808-Publ_PDFVersion.pdf
======================

Banking/Technology Concentration

There is a plenty of evidence, coming from the North America, Europe,
South-East Asia, and other world regions, that ownership concentration
in the banking industry also leads to the drastic erosion in the
number of vendors that develop, sell and support specialized financial
software. The number of independent banks in the North America,
Caribbean and other parts of the world dwindles, with the very large
banks taking over their small and medium competitors entrenched in
particular localities.

A significant contributing factor to the bank industry's concentration
is the substantial cost of new Internet banking solutions that are
imposed by the legitimate concerns for privacy, security, operation
expenses, outsourcing of support, equipment maintenance, and,
increasingly considerable, reporting and compliance requirements. The
Catch-22 situation is in the fact that small financial institutions
(FIs) need relatively inexpensive and versatile solutions to support
the multitude of the new government requirements; but taking place
parallel rapid concentration in the banking technology industry shifts
its focus to servicing very large banks, where the development money
are. Small and specialized banks, trusts and insurance companies are
being squeezed in the process.

The only viable long-term solution might lie in the proactive
association of small financial institutions across the globe, and
their aggressive use of aggregated procurement power - to jointly
resolve the critical issues of privacy, security, operation costs,
support outsourcing, equipment maintenance and, increasingly
considerable, reporting and compliance. Technically such
moderate-cost/efficient solutions are becoming available with the
introduction of 64-bit computing platforms. However, they typically
require a substantial level of reengineering commitment from the top
banking executives in the exceedingly conservative industry, where
senior managers are typically reactive. Hence, the future of a small
or medium size individual bank or trust depends more on its own course
of action. The radical change in small FI survivability is still
feasible but, unfortunately, less and less probable with the passage
of time and of the new opportunities.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe. Please share information about JIBC articles
with the Internet community and suggest to us new ways to promote JIBC
among academics and professionals from around the globe.

As well, I am challenging all the current and past authors and editors
to email your own articles - along with the rest of JIBC edition - to
at least 10 of your peers and colleagues in academia, government and
industry. Make sure that they are well aware of your articles and the
Journal of Internet Banking and Commerce. Recommend that they also
subscribe to email editions. After all, we send it around just 3-4
times a year.

A special appeal to ecommerce/e-business students to pass a word about
JIBC to your professors and classmates and, more importantly, to ask
them to supply new articles and tell everybody to subscribe.

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and academic reference
publications. Also, if you notice publications referring to JIBC
articles, please let us know.

Let's spread the word!

======================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2008-08/EditorialNote.pdf
======================

Oh My God!! These were the expressions of people when they watch twin
tower fall seven years back. I noticed the similar faces few days back
when two giants of the finance industry Lehman Brothers and Merrill
Lynch fall because of financial crisis.

Last editorial I talked about 3F crisis, however, it appears financial
crisis will swallow other two. However,  the feds have given lease of
life by providing cash-injection to crumbling markets. Is the federal
intervention considered a step towards nationalizing financial
institutions? Is it considered healthy to monitor the free market
economy? Some academics may say, this is how communism started. Strong
statement uhh!!

Recently, I was invited to Poland to participate in Baltic Innovation
Forum held in the city of Gdansk. The highlight of the forum is to
create near-shore capabilities in IT & ITES for continental Europe. I
found it an interesting development for IT & BPO companies. Eastern
Europe in particular has low cost, native speakers, highly skilled
manpower and efficient infrastructure compared to traditional IT
superpowers like India. Trends have shown that many Indian IT
companies are shifting their base to countries like Hungary, Romania &
Poland. In my opinion, the "new Europe" will see highest growth in
next decade.

In the current issue, Chitura (et al) has done critical review of
literature to study barriers to e-commerce adoption in small and
medium companies. In another important review, Chai Lee Goi
investigated implementation of M-Commerce in Malaysia. Charles Ayo (et
al) in his article discussed a framework for e-commerce implementation
in Nigeria. In this paper author undertook PEST analysis to study the
current practices not only in Nigeria but in other African nations.
Sujana Adapa explores the cultural consideration in adoption of
Internet shopping in India & Australia.

In other article, Murali Raman & his colleagues evaluate consumer
perceptions on quality of e-services and Internet banking adoption in
Malaysia. Jae Won Kim, & Hyung Seok Lee from South Korea undertook a
case of Sahmyook University in Korea to determine the underlying
factors that keep higher educators away from e-teaching, and to
discuss strategic issues associated with the diffusion of e-teaching
in the context of higher education. Yazan from Bradford University has
done an exciting comparison between UK & Jordanian banks on
quantitative evaluation of the Internet banking service encounter
quality.

As always your views are important to us, feel free to write to me
sharing your experience about JIBC.

Nikhil Agarwal

=============================
PEER REVIEWED RESEARCH PAPERS
=============================

AUSTRALIA: Adoption of Internet Shopping: Cultural Consideration in
India and Australia
(By Sujana Adapa)
http://www.arraydev.com/commerce/jibc/2008-08/Adapa.pdf

The current research paper examines the adoption of Internet shopping
patterns exhibited by Indian women currently residing in India and
Australia emphasizing on the prevailing cultural dimensions. A
conceptual framework has been developed based on the theoretical
background that links intention to shop over Internet and Hofstede's
cultural dimensions to adoption of Internet shopping. In order to test
the stated hypotheses, the proposed relationships between the
variables were empirically verified.

A web-based survey was employed using an online questionnaire as a
research instrument, and respondents were approached by posting the
questionnaire to various newsgroups. The results of the study reveal
that intention of Internet shopping as measured with the perceived
attributes significantly influences the actual adoption of Internet
shopping. With regard to the prevailing cultural dimensions in the
country of origin (India), the results obtained are as expected and
significantly influence the Internet purchases. Where as with regard
to the prevailing cultural dimensions in the country of residence
(Australia), most of the results obtained are as predicted except for
the dimension masculinity versus femininity. The results obtained are
promising for Internet marketers to formulate effective marketing
strategies apart from venture capitalists and e-commerce business
strategies.

MALAYSIA/AUSTRALIA: Information Technology in Malaysia: E-service
Quality and Uptake of Internet Banking
(By Murali Raman, Richard Stephenaus, Nafis Alam, and Mudiarasan
Kuppusamy)
http://www.arraydev.com/commerce/jibc/2008-08/JIBCArticle_MuraliRaman.pdf

Internet banking is one of the most popular services utilized by the
Malaysian retail banking customers in recent years. Despite its
attractiveness, studies have shown that the quality of e-services is
core a issue that influences adoption of Internet banking services
worldwide. The objective of this study is to evaluate consumer
perceptions on quality of e-services and Internet banking adoption in
Malaysia. Results show that Internet banking users and non-users have
different expectation towards e-service quality preferences. The
implications are discussed and recommendations are made in order to
improve Internet banking service quality in Malaysia.

NIGERIA: A Framework for e-Commerce Implementation: Nigeria Case Study
(By Charles K. Ayo, Adeblyi Ayodele A., Fatudimu Ibukun Tolulope, and
Uyinomen O. Ekong)
http://www.arraydev.com/commerce/jibc/2008-08/Ayo.pdf

The advent of the Internet has transformed the business environment in
no small measure and has influenced the ways and manner businesses are
transacted. This platform has brought about enhanced electronic and
mobile business transactions. However, the advent of e-Commerce,
m-Commerce or i-Commerce has placed a premium on the participating
organisations or nations in terms of provision of the basic
infrastructure for a secure, seamless and trusted business environment
through the electronic media.

This paper presents an exploratory study of the prospects of
e-Commerce implementation and the factors inhibiting its growth. A set
of questionnaire was designed, administered and analysed based on
political, economic, social and technological (PEST) analysis. The
PEST analysis is to help review the current practices with a view to
developing a framework for Nigeria and other developing nations in
Africa.

Findings revealed that the Automatic Teller Machine (ATM) is the most
widely used medium of e-Payment in Nigeria, which is not very suitable
for e-Commerce implementation. Similarly, the Internet penetration is
still abysmally low and is one of the major threats to e-Commerce
implementation. However, the nascent democracy enjoyed in Nigeria is
faced with some teething problems, but it promised with time, relative
political stability, direct foreign investment, improved economical
atmosphere, improved social services and technological development
more than ever witnessed in the country.

Therefore, a viable framework for Nigeria and Africa would be such
that involves the private and public partnership (PPP). This
consortium is expected to provide the platform for access to the
Internet and popularize the use of e-Payment among other things.

SOUTH KOREA: Some Considerations in Diffusing e-Teaching for Higher
Education: A Case of Sahmyook University in Korea
(By Jae Won Kim and Hyung Seok Lee)
http://www.arraydev.com/commerce/jibc/2008-08/Lee.pdf

Over the past few years, many higher educational institutions have
begun to implement e-learning technologies, initially by blending them
with conventional classroom activities. For an educational change like
this to be truly reformative, as the educational authorities wish,
universities/colleges will need to effectively manage this transition,
as well as provide technical support to all relevant parties.

The purpose of this study was to determine the underlying factors that
keep higher educators away from e-teaching, and to discuss strategic
issues associated with the diffusion of e-teaching in the context of
higher education. One case of a smaller University in Korea was
closely analyzed for this purpose. This study focused on the
provider's side of e-learning as the delivery of course contents via
electronic media, especially the Internet.

UNITED KINGDOM: Quantative Evaluation of the Internet Banking Service
Encounter's Quality: Comparative Study Between Jordan and the UK
Retail Banks
(By Yazan K. A. Migdadi)
http://www.arraydev.com/commerce/jibc/2008-08/Yazan_1.pdf

The purpose of this study is to identify the differences in the
Internet banking service encounter's quality between clicks-and-mortar
retail banks in Jordan and the different Internet banking models of
the UK retail banks, and between clicks-and-mortar and dot com. retail
banks in the UK, the web sites were evaluated by using the web site
quantitative evaluation method (QEM) that developed by Mateos et al.
(2001) and Miranda et al. (2006), the evaluation of the banks' web
sites was conducted in March 2008 for sixteen clicks-and-mortar retail
banks in Jordan, eleven clicks-and-mortar retail banks in the UK, and
six dot com. retail banks in the UK, the results indicated that; the
Internet banking service encounter quality of the clicks-and-mortar in
Jordan retail banks is very close to the UK banks, further quality of
Internet banking service encounter quality of the clicks-and-banks in
the UK.

UNITED STATES: An Innovative Spreadsheet Authoring Environment
(By Richard J. Petti and Howard I. Cannon)
http://www.arraydev.com/commerce/jibc/2008-08/Petti.pdf

Spreadsheets are problematic components in enterprise information
systems, due to reliability and other problems. The root problem is
that the greatest strength of spreadsheets - enabling authors to work
with visual layouts of models instead of program code - is a
double-edged sword, especially in more complex applications.

Spreadsheets are simple in the sense that the set of primitive
operations is small; yet they are not simple in the sense of having a
sufficiently rich set of primitives for building complex models. What
is needed in spreadsheet land is a new synthesis of visual layout and
program structures that preserves the virtues of spreadsheets while
introducing the missing structures - time series, dimensions,
variables, data types - in a way that does not render business
analysts dependent on programmers, as BI and ERP systems often do.
This paper compares these design criteria against the new ModelSheet
authoring environment, which is based on a new symbiosis of visual
layout and program structures. ModelSheet retains the key strengths of
spreadsheets - supporting decentralized innovation by domain experts
who may not be programmers - while it improves model reliability,
model expressiveness, team collaboration, and modeler productivity.

ZIMBABWE: Barriers to Electronic Commerce Adoption in Small and Medium
Enterprises: A Critical Literature Review
(By Chitura T., Muphemi S., Dube T., and Bolongkikit J.)
http://www.arraydev.com/commerce/jibc/2008-08/Chiturat.pdf

This study is attempting to determine if the barriers reported in
early e-commerce researches differ from those found in recent
e-commerce studies as well as exploring if the resultant barrier
groupings created from e-commerce barriers are dissimilar. To achieve
our research's aim, an extensive literature review was conducted based
on what we believe to be representative sample of some of the most
cited pieces of research on this topic. The study concludes that
though the issues inhibiting SMEs in their uptake of e-commerce are
seemingly endless, the reality is that these issues have largely
remained the same since the advent of e-commerce in the early 1990's.
The implication of our study is that researchers should stop
reinventing the list of e-commerce adoption barriers but instead focus
their efforts on how SMEs can overcome these barriers so as to reap
the full benefits of the technology.

======================
OPINION ARTICLES
======================

MALAYSIA: Review on the Implementation of Mobile Commerce in Malaysia
(By Chai Lee Goi)
http://www.arraydev.com/commerce/jibc/2008-08/GoiChaiLee_Aug2008.pdf

Malaysia is the second highest mobile penetration in South East Asia
after Singapore. Although M-Commerce still at infancy stage, Malaysia
has already embarked on the adoption of M-Commerce. As the
communications and multimedia industry evolves towards convergence,
licences under the Communications and Multimedia Act 1998 are
formulated to be both technology and service neutral. This creates
opportunities for expansion into the industry particularly in the area
of applications service providers and provides for a more effective
utilisation of network infrastructure. To help future applications and
technologies handle M-Commerce, Varshney and Vetter (2002) proposed
four levels of M-Commerce framework: M-Commerce applications, user
infrastructure, middleware, and network infrastructure. Mohd and Osman
(2005) have adapting this model into M-Commerce applications in
Malaysia. M-Commerce does have a bright future in Malaysia. To achieve
this objective, mobile users expect an improvement in charges access
fee, network quality, accessibility and speed. Other issues need to be
considered are security and customer customisation. With government
support, M-Commerce in Malaysia has a very promising future and moves
forward in sectors that are clearly going to be the engines of growth
worldwide over the next few years.
=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest Internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Editor-in-Chief: Nikhil Agarwal

Deputy Editor-in-Chief: Joshua Fogel

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord
Jenkins

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
South America Contributing Editor: Carlo G. P. Bellini
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of
this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 13 No. 1 April 2008
http://www.arraydev.com/commerce/jibc/current.asp

======================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2008-04/0804-Publ_PDFVersion.pdf
======================

Global Competitive Strategies

I just came from Pune, India, which I visited at the kind invitation
of our distinguished Editor-in-Chief Prof. Nikhil Agarwal, here in his
capacity as the Director of Zensar Center for Business Innovation
(ZCBI). At ZCBI Post Graduate Program in Business Transformation I
gave a cycle of interactive lectures on Global Competitive Strategies
for Technology-Based Organizations to Nikhil's cohort of very capable
students eager to learn how to win in the new global economy.

I did encourage the students to subscribe to JIBC - hopefully we will
have a number of new proactive users eager to employ the wealth of
academic research and practical experience represented by this
publication. My special greetings are to all those students who did
subscribe, both from ZCBI and the rest of the world. (By the way,
anyone who might be interested in engaging globally-oriented business
transformation professionals is encouraged to contact Nikhil, and
hopefully will not be disappointed in the outcome).

In preparation to my trip, I have read numerous eyewitness accounts
about India's economic boom, with the emerging middle class
establishing itself as the major global player. Still, I was quite
impressed with the pace of change and the sophistication and modernity
of the emerging Indian technological and business society. Nowhere it
is more apparent than in Pune, which is rapidly establishing itself as
a major high-tech hub of India and the world.

My trip made me to think more carefully of the global value of
articles published by JIBC. It appears to me that encouraging
effective globalization should be a personal business for all of us,
especially the crew of JIBC authors and editors.

For instance, it would be interesting and effective if every JIBC
author from the developing country were to invite as a co-author a
leading expert from the developed country and vice versa. i.e.,
together you can explore whether solutions already working in one
economy are applicable to some other. Most likely it will be an
effective and cross-beneficial learning process, whose outcome would
be useful for the rest of the world. (Feel free to drop us a line with
the alternative proposal on how to organize cooperation of academics
and practitioners in different economic societies).

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe. Please share information about JIBC articles
with the Internet community and suggest to us new ways to promote JIBC
among academics and professionals from around the globe.

As well, I am challenging all the current and past authors and editors
to email your own articles - along with the rest of JIBC edition - to
at least 10 of your peers and colleagues in academia, government and
industry. Make sure that they are well aware of your articles and the
Journal of Internet Banking and Commerce. Recommend that they also
subscribe to email editions. After all, we send it around just 3-4
times a year.

A special appeal to ecommerce/ebusiness students to pass a word about
JIBC to your professors and classmates, and, more importantly, to ask
them to supply new articles and tell everybody to subscribe.

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and academic reference
publications. Also, if you notice publications referring to JIBC
articles, please let us know.

Let's spread the word!


======================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2008-04/EditorialNote.pdf
======================

3F - Fuel, Food and Finance crisis is keeping thinkers busy around the
world. 2008 is considered to be quite eventful year be it Olympic or
global crisis. My students ask questions on pattern of the crisis, as
a Professor of business management, I found it very difficult to
answer. All the theories & concepts of economics have gone wired which
are framing the basis of world economy. Academicians & thinkers are
buring midnight oil across the continents to concentrate on areas
which might need broader attention & deeper thinking to survive
economic slowdown. For eg: one of them is demographic studies; D K
Matai in his recent note said "Nothing less than fundamental re-design
of our political processes will even begin to allow us to deal with
issues that require a generational attention span. Most notable among
these is manifest overpopulation, failure on which will at the very
best severely handicap all other efforts. Among the many planetary
scale problems, demographics is perhaps the most neglected."

Last month, JIBC publisher Nahum Goldmann and Editor Edwin Jacobs
visited me in Pune, India. They were teaching to the Master's students
who are doing their degree in Business Transformation. It was Edwin's
first visit to any Asian country, and he was surprised to see the
economic development in this part of the world. He asked me if the
Asian countries are much dependent on western countries & their market
is continuously expanding, then why there is a slowdown in the
economy. He was referring to the portfolio approach for the economy;
the slowdown in one market can be compensated by blockbuster
performance in other. The Asian economies and financial institutions
are more-or-less untouched by the financial turmoil in west, may be
due to strong domestic markets. However, we can feel the shadow of the
slowdown in different forms, like the rising fuel prices have
shattered the confidence of people leading to high inflation.

The current issue is has 14 articles from different parts of the
world. I am sure you will enjoy reading them. I am using this
opportunity to congratulate our two Editors who have assumed new
responsibilities. Dr Raed Awamleh has joined as University Director at
Middlesex University in Dubai and Dr. Jean-Michel Sahut has joined as
Professor at Amiens School of Management in France. Please email your
feedback to us by using online form at
http://www.arraydev.com/commerce/jibc/question.htm. Your feedback and
participation is extremely important to us.

Please ask your colleagues & friends to join the JIBC.

Nikhil Agarwal


=============================
PEER REVIEWED RESEARCH PAPERS
=============================

NEW ZEALAND: Intellectual Capital: Acquisition and Maintenance: The
Case of New Zealand Banks
(By Kiran Sahrawat)
http://www.arraydev.com/commerce/jibc/2008-04/Sahrawat.pdf

The new knowledge economies have highlighted the importance of
intellectual capital (IC) and the imperative need to measure and
manage their associated costs and benefits. Banks and financial
institutions, which are rich in IC (human, customer, and social
capital), are in danger of becoming subject to 'IC walkouts' if they
resist accounting for the hidden value that exists in IC and its
constituent elements.

This paper discusses how New Zealand banks incur the cost of acquiring
IC and realize the need to recognize related cost drivers. For banks
in New Zealand, one of the most important sources of revenue or
interest income is from mortgage business. This investigation looks at
the value added by mobile mortgage managers (MMMs) and a possible
model for measuring the IC vested in MMMs.


JORDAN: A Framework for Evaluating the Effectiveness of Information
Systems at Jordan Banks: An Empirical Study
(By Ahmad Mashour and Zakaria Zaatreh)
http://www.arraydev.com/commerce/jibc/2008-04/Mashour and Zaatreh.pdf

Banks and other financial institutions in Jordan are one of the
largest investors in the fields of information systems (IS), and there
are many indications that these trends to continue in the future.
However, there is a concern among CEOs and top managers that the IS
investments are not yielding the anticipated outcomes. This paper
investigates the investment of information systems at Jordan banks and
reports the results of an empirical study that evaluates the
contribution of IS in the effectiveness of banks operations.

This paper measures the factors that determine information systems
effectiveness at Jordan main banks. These variables are presumably
system decision performance, system usage and user satisfaction among
others that are considered the most effective variables in banks
performance.

NIGERIA: Optimizing the Use of Information and Communication
Technology (ICT) in Nigerian Banks
(By Ayodeji Akinolu Agboola and Rafiu Oyesota Salawu)
http;//www.arraydev.com/commerce/jibc/2008-04/Agboola_final_accepted.pdf

The study identified various Information and Communication Technology
(ICT) in use and determined how they could be utilized for optimal
performance on business transactions in the banking industry. The
selected transactions for the study are deposit, withdrawal,
enquiries, reference letters, opening and closing of accounts, funds
transfer, special bills, loans and overdraft.

The study concluded that banks should incorporate ICT into their
strategic plans for effective performance in payment and delivery
systems. Adoption and allocation of ICT should be based on proper
analysis to determine the type, nature and extent of products required
for effectiveness and efficiency.

PAKISTAN: Bankers' Perceptions of Electronic Banking in Pakistan
(By Ahmad Kaleem and Saima Ahmad)
http://www.arraydev.com/commerce/jibc/2008-04/AhmadKaleem.pdf

Electronic distribution channels provide alternatives for faster
delivery of banking services to a wider range of customers. E-channels
have gained increasing popularity and have attracted the attention of
both academics and practitioners. This paper aims to collect bank
employees' perceptions of the potential benefits and risks associated
with electronic banking in Pakistan. The outcomes may help the
management of banks develop effective strategic planning for the
future of electronic banking in developing countries like Pakistan.

Primary sources were used to collect the data and were analyzed via
frequency analysis and mean score analysis. The results suggest that
bankers in Pakistan perceive electronic banking as tool for minimizing
inconvenience, reducing transaction costs and saving time. Similarly,
they believe that electronic banking increases the chances of
government access to public data, increases the chances of fraud and
that there is a lack of information security. Bank personnel profiles
were further analyzed in relation to their perceptions to identify
different segments among the target respondents.

The results show that public bank employees who have professional
degrees consider 'minimizing transaction costs' and 'reduction in HR
requirements' as the most and the least important benefits of
electronic banking respectively. Private bank employees who have
masters or bachelor degrees, and less than 10 years experience,
perceive 'time saving and minimizing inconvenience' as the major
benefits of electronic banking. However they did not consider
'reducing the risk of carrying cash' as an important benefit.

NIGERIA: Improving the Response Time of Online Buyers in Nigeria: the
Way Forward
(By Anu Ajayi, Adesola Aderounmu and H. Abimbola Soriyan)
http://www/arraydev.com/commerce/jibc/2008-04/Ajayi.pdf

Though electronic commerce (e-commerce) is yet at its infancy in
Africa and other developing countries, several factors such as lack of
trust, technology infrastructure, funds and shortage of manpower can
be attributed to this. However, the current model of web server
response time as it pertains to developing countries will however
hinder its general acceptability. The ability of E-commerce sites to
satisfy and retain their customers will no doubt depend largely on the
quality of their service delivery.

Existing Quality of Service (QoS) provisioning architectures for
E-commerce placed emphasis on WWW server and bandwidth inadequacies.
This study identified the necessity to include client's device
limitation into e-commerce QoS frameworks especially for web
applications to be deployed in Africa, if user-perceived QoS (usually
measured by response time) is to be improved. As indicated in the
study, client's device limitation is an important factor that should
be given priority. Most computer users in Africa due to the high cost
of ownership of PCs used outdated or cloned PCs whose performance
could not be guaranteed.

MALAYSIA: The End-User computing Satisfaction (EUCS) on Computerized
Accounting System (CAS): How They Perceived?
(By Azleen Illias, Norazah Bte Mohd Suki and Mohd Rushdan Yasoa)
http://www.arraydev.com/commerce/jibc/2008-04/Azleen_Illias.pdf

The purpose of this study is to measure the level of satisfaction
among the end-users of computerized accounting system (CAS) in private
companies. The study determines the relationship of five factors
(content, accuracy, format, ease of use, timeliness) that influence
satisfactory level among the end users toward the CAS. Further, this
paper examines critical factors in EUCS (content, accuracy, format,
ease of use, timeliness) that contributes most to satisfaction. The
research was conducted using a set of questionnaire to 269 private
companies' staffs that using computerized accounting system (CAS).
This study is analyzed with reliability analysis, correlation analysis
and Standardized Regression Weight (using Structural Equation
Modelling technique). The empirical results of this study can provide
support for the Doll and Torkzadeh model (1988), which related to the
factors contributing end-users' satisfaction toward accounting system.

MALYASIA: A Review of Development and Adoption of Internet and ICT in
Malaysia
(By Chai Lee Goi)
http://www.arraydev.com/commerce/jibc/2008-04/GoiChaiLee.pdf

The main objective of this study is to review the development and
adoption of Internet and ICT in Malaysia. The adoption of ICT already
introduced in Malaysia in 1960s. Refer to 21st century, number of
studies shows that development and adoption of Internet and ICT in
Malaysia is among the highest in the ASEAN countries.

TUNISIA: Determinants and Consequences of the Website Perceived Value
(By Ines soltani and Jamel-Eddine Gharbi)
http://www.arraydev.com/commerce/jibc/2008-04/Ines Soltani.pdf

Customer value is the foremost driver of competitive advantage and a
critical strategic weapon in attracting and retaining customers in the
Internet shopping environment (Lee and Overby, 2004). In this paper,
we focus on the influence of the site quality on the perceived value
and its consequences. Results of this study indicate that the
perceived value is a highly telepresence and flow state-dependent;
that perceived value generates loyalty; and that, similarly to
Mathwick et al (2001)'s findings, site preference strongly impacts
future patronage intent. Moreover, perceived value, as a whole, does
not influence preference and future frequentation of the site.
Discussions of the results and future research are offered.

INDIA: Wireless ATM: A Technological Framework to m-Banking
(By Susmi Routray, A. M. Sherry and B. V. R. Reddy)
http://www.arraydev.com/commerce/jibc/2008-04/Sushmi Routray.pdf

Mobile and Wireless communication devices are becoming enablers for
organizations to conduct business more effectively and efficiently.
One of the most effective applications is mobile banking (m-banking).
For any application to gain recognition technological advancements
play a vital role. To make m-banking application a success bandwidth
management is an important issue. The increased flexibility and
mobility feature of wireless ATM and its bandwidth on demand function
is motivating a large number of carriers towards deployment of the
WATM networks. But there are certain issues which are required to be
addressed in WATM. The issues are cost effective planning of network,
location management and handover management. In this paper we have
suggested and evaluated a technological framework for the m-banking
application using wireless ATM that optimizes the bandwidth usage and
provides an effective handover management. Simulation results show
that the resultant framework is very effective in handling the
bandwidth and the handover issue in wireless ATM and provides an
effective WATM framework model.

PAKISTAN: Customer Acceptance of Online Banking in Developing Economies
(By Tahir Masood Qureshi, Muhannad Khaqan Zafar and Muhammad Bashir Khan)
http://www.arraydev.com/commerce/jibc/2008-04/Tahir Masood.pdf

Technology is affecting the life of every individual in this present
age. Online banking is also one of the technologies that are getting
recognition around the globe. There are a lot of customers around the
world who are accepting this technology very quickly but in growing
countries like Pakistan the adoption ratio is very high. There are
many banks that are providing these facilities to customers.

The basic purpose of this research is to evaluate the customer
acceptance of online banking. Almost 50% of the clients shifted from
traditional banking to online banking system. The core reason of this
transfer is perceived usefulness, security and privacy provided by
online banking.


======================
OPINION ARTICLES
======================

PHILIPPINES: The Language Business
(By Charity T. Gamboa)
http://wwww.arraydev.com/commerce/jibc/2008-04/Charity.pdf

E-learning has become a trend wherein people would opt to learn at
their own pace. This need arises particularly when non-English
speakers would want to learn English but do not want to go through the
hassle of attending regular classes, thus, the option to study online
is a good way for them to balance their work and study time. In fact,
most of these students are traders who feel that learning English is
an essential factor in doing business and getting foreign partners.

This paper presents an overview of how there is a conflict between
issues underlying the business side of an online tutorial and the
pertinent issues of how English should be taught as a learning
process. This overview will identify the argument between the business
of online tutorial and the learning process itself and how it should
be balanced, as well as the essential ingredients of successful online
tutorials based on experiences of online tutorial schools in the
Philippines.

FRANCE: The Adoption and Diffusion of Electronic Wallets: The Case of
Moneo
(By Jean-Michel Sahut)
http://www.arraydev.com/commerce/jibc/2008-04/Jean-Micehl-Sahut.pdf

Despite the strong and consistent increase in the use of electronic
payment methods worldwide, the diffusion of electronic wallets is
still far from widespread. Analysis of the failure of electronic
wallet uptake has either focussed on technical issues or chosen to
analyse a specific scheme (Stalder, 1998). This article proposes a
joint approach to analysing key factors affecting the adoption of
e-wallets by using the 'Technology Acceptance Model" (Davis, 1999)
which we have expanded to take into account the cost of using
e-wallets. By studying the Monéo e-wallet we can use this method of
analysis and compare it against the only French scheme still in
operation.

This article explains the elements affecting the adoption of this
electronic payment method using the 'Technology Acceptance Model"
(Davis 1999) which offers a conceptual framework for analysing the
adoption of new technology from its perceived usefulness and ease of
use. We propose extending this model to incorporate the cost of using
e-wallets using the 'perceived advantage' variable that is the result
of the relation between the perceived usefulness and the cost. Then we
will try to explain the adoption of different e-wallets and of Monéo
in particular by applying this new variable.

IRAN: The Modern Integrated Payment system: The Iran Experience to Date
(By Amir Khosravani)
http://www.arraydev.com/commerce/jibc/2008-04/Khosravani.pdf

The payment system is a mechanism which enables cash-transfer
(electronically) from one account to another regardless the location
of the holding branch of each account. An integrated payment system
covers all the inter-banking payments in a synchronized and continuous
structure, and includes Real Time Gross Settlement System (RTGS),
Automatic Clearing House (ACH), and the Scrip less Securities
Settlement System (SSSS).The Central Bank of the Islamic Republic of
Iran, in order to play its role and to fulfill its responsibilities,
has pursued the establishment and implementation of the real time
gross settlement system (RTGS) as the main infrastructure of
settlement, while also has developed the electronic inter-banking
billing system (Sahab) to offer a variety of real time cash-transfer
for small payments. These two infrastructures will be fully in
operation by the end of the current year. The ACH and SSSS systems
will also be considered in the next phase, in which the operating
priority is connecting such systems to the RTGS system.

The purpose of this article is to study the status and characteristics
of electronic banking and the method of implementing it in Iran. Also,
it is concluded, considering the significant increase in the
successful transactions in the Shetab center and, the outstanding
performance of the payment orders in RTGS, the hardware and software
performance of the banks are after all satisfactory. However, despite
the trivial proceedings made in such development of the electronic
banking, there still exist some obstacles and difficulties which, are
fully addressed in the following article.

MALAYSIA: E-payemnts: Problems and Prospects
(By J. Raja and M. Senthil Velmurgan)
http://www.arraydev.com/commerce/jibc/2008-04/Raja and velmurgan.pdf

The success of electronic commerce depends upon effective electronic
payment systems. The Internet and on-line businesses are growing
exponentially. Due to this explosive growth, electronic commerce on
the Internet uses various electronic payment mechanisms that can cater
for much diversity of applications. This paper discusses the evolution
and the growth of electronic technologies, which can provide more
advanced technical supports for electronic payment systems. The focus
of this paper is to identify and explain the different methods of
e-payment the authors analyses the challenges of electronic payments
from different perspective and provide preliminary security
countermeasures for each of the issues. Finally a number of solutions
have been proposed based on the problem and discussed on the prospect
of electronic payment system

=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Editor-in-Chief: Nikhil Agarwal

Deputy Editor-in-Chief: Joshua Fogel

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord
Jenkins

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
South America Contributing Editor: Carlo G. P. Bellini
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of
this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 12 No. 3 December 2007
http://www.arraydev.com/commerce/jibc/current.asp

======================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2007-12/0712-Publ_PDFVersion.pdf
======================

Community Building

I am always amazed by the geographic, cultural and business diversity
of JIBC readers, authors, and our volunteer editors. In contrast to
more traditional methods, Internet publishing truly adds value, not
just assembles together a set of the leading scholars, researchers,
experts and practitioners in the given field. Well-positioned and
respected journals, like JIBC, allow experts from all the corners of
the world to become an integral part of the global community of action
and positive change.

That's not to say that we all have to think alike, or that JIBC
Editorial Board is trying to impose some artificial uniformity. Our
community is always in transition, as the field of our discussion is
new, diverse and frequently controversial - it touches lives of real
people. Some well-tested "common sense" business and commerce ideas do
not stand a chance in the new ebusiness paradigm. Legislation,
technologies, as well as government, social, financial, industrial and
environmental frameworks are sometimes hopelessly out of date.

Dear reader and author - I feel that is our joint responsibility, a
unique opportunity, and an honour to contribute to the global
prosperity. This we can do by deriving novel ecommerce and ebanking
solutions that the generations to come can use in making their life
better.

Blessed are those few who can afford to live and function outside of
the modern commercial and financial frameworks. For the rest of us
(i.e., the absolute majority of global population), financial and
business consideration are often a source of everyday effort and
concerns. Hopefully, our Journal contributes in a modest way to
resolving important business and commercial issues of the day; and,
with some luck, of the years to come.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe. On page
http://www.arraydev.com/commerce/JIBC/current.asp you will find links
to posting our publication to Digg this, del.icio.us and Slashdot.
Please share information about JIBC articles with the Internet
community and suggest to us new ways to promote JIBC among the
academic and professional communities around the globe.

As well, I am challenging all the current and past authors and editors
to email your own articles - along with the rest of JIBC edition - to
at least 10 of your peers and colleagues in academia, government and
industry. Make sure they are aware of your articles and the Journal of
Internet Banking and Commerce. Recommend that they also subscribe to
email editions. After all, we send it around just 3-4 times a year.

A special appeal to ecommerce/ebusiness students to pass a word about
JIBC to your professors and classmates and, more important, to ask
them to supply new articles and tell everybody to subscribe.

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and academic reference
publications. Also, if you notice publications referring to JIBC
articles, please let us know. Let's spread the word!

======================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2007-12/EditorialNote.pdf
======================

In last editorial I have spoken about subprime tremors and global
warming of economy. As expected, these tremors and global warming
signals have their first victims. Citigroup, UBS, Soc Gen every bank
balance sheet is in red. Reason? Reason may be simple, they were not
smart enough to see the future. Many of you may laugh at the comment
that biggest banks in the world are smart enough ... but think again !!

At Soc Gen a rogue trader has cost them Euro 7.2 billion dollars. I
wonder how can smart and technology savvy bank like Soc Gen have faced
such crisis. How it is possible that anybody has not noticed such
large fund movements, it is against the ERP rules of workflow. I would
term it social engineering. In end Feb, I am speaking at 10th Fund
Compliance Summit at Luxembourg. The theme of my presentation is
'Methods to Evade Social Engineering Attacks and how to create
checks/balances to avoid human errors'. It is easier to create a
world-class IT infrastructure, but we should not forget that the
management is still in hands of human being. Therefore, it is
essential to have human-system-chain methodology to avoid blunders in
future.

In this issue we have 12 articles. S Arumuga from India gives a
glimpse of the need & role of virtual trainer in the organization. The
paper talks about the new trend in implementing virtual trainer in
Multiuser Virtual Reality system. Tariq Bhatti from UAE explores the
factors influencing the adoption of mobile commerce. Blanca
Hernández-Ortega from Spain discusses the analysis of Web Navigability
in Spanish Internet Banking. In this paper authors have analysed
empirically all the Spanish banking entities with a presence on the
Internet and have measured the level of navigability in the sector.
Geoffrey H. Tanakinjal from Malaysia has shared an analysis of mobile
devices and communication. Authors believe that their research will
contribute to the mechanism used by telecommunication service
companies to communicate about their services. George Rigopoulos from
Greece talks about Technology Acceptance Model Framework to Evaluate
Users' Perception towards Online Electronic Payments.

Our regular contributor Hanudin from Malaysia explores the technology
acceptance of Internet banking among undergraduate students in
Malaysia. Hong-Jen Lin from US, his article adopts the complementary
assets model to analyze the environmental issues of international
e-finance under the new Basel Accord. In another interesting article
that gives different dimension and extension of Technology Acceptance
Model; Muniruddeen Lallmahamood of Mauritius gives an examination of
individual's perceived security and privacy of the Internet in
Malaysia and the influence of this on their Intention to use
e-commerce. Jarunee Wonglimpiyarat from Thailand gives overview of the
business strategy in managing payment innovations. His study looks at
the smart card - electronic cash (e-cash) innovation in the financial
service industry. Ghulam Muhammad Kundi discusses the opportunities
and threats of eBusiness in Pakistan.

Overall a very strong issue with global footprints. Enjoy the New Year
and hope the global warming of economy should see another Al Gore.

=============================
PEER REVIEWED RESEARCH PAPERS
=============================

USA: The Strategies of International E-Finance Under Basel II: A
Complementary Assets Approach
(By Hong-Jen Lin)
http://www.arraydev.com/commerce/jibc/2007-12/HongJenLin_Final.pdf

This article adopts the complementary assets model to analyze the
environmental issues of international e-finance under the new Basel
Accord (Basel II). The capability of a bank to comply with Basel II is
regarded as the complementary assets and the e-finance is treated as
the innovative new technology in the model. Based on the analysis,
several strategies that bankers may take are suggested. The analysis
shows that Basel II will obviously foster more e-finance investments
and the use e-finance will make the supervisory work under Basel II
regulations a challenge.

AUSTRALIA: An Examination of Individual's Perceived Security and
Privacy of the Internet in Malaysia and the Influence of This on Their
Intention to Use E-Commerce: Using An Extension of the Technology
Acceptance Model
(By Muniruddeen Lallmahood)
http://www.arraydev.com/commerce/jibc/2007-12/Muniruddeen_Final.pdf

This study explores the impact of perceived security and privacy on
the intention to use Internet banking. An extended version of the
technology acceptance model (TAM) is used to examine the above
perception. A survey was distributed, the 187 responses mainly from
the urban cities in Malaysia, have generally agreed that security and
privacy are still the main concerns while using Internet banking. The
research model explains over half of the variance of the intention to
use Internet banking [R2 = 0.532 (adjusted)], the unexplained 47
percent of variance suggests that the model may have excluded other
possible factors influencing the acceptance of Internet banking.
Interaction in the local language (Bahasa Malaysia) did not have an
impact on the ease of use of Internet banking. Internet security,
Internet banking regulations and customers' privacy would remain
future challenges of Internet banking acceptance. The value of this
study may provide an updated literature in the field of Internet
banking acceptance in Malaysia.

MALAYSIA: ICT Adoption in Malayasian SMEs from Services Sectors:
Preliminary Findings
(By Alam. S. S. Mara and Nilufar Ahsan)
http://www.arraydev.com/commerce/jibc/2007-12/Syed_accepted.pdf

The purpose of this research was to investigate the extent to which
small and medium size businesses in the southern region in Malaysia
are prepared for ICT adoption. Most of the businesses have now
accepted ICT as an important tool to increase its business in the
domestic as well as global market place. In future ICT will grow more
rapidly in the Malaysian SMEs sectors. In order to increase the
effectiveness of ICT, companies can use Internet to present almost
unlimited information about their products and services in cyberspace.
Through judgment sampling SMEs from service sectors of northern region
was selected as the research area for this study. This study
investigates the rate of usage of ICT by the SMEs. The survey was
conducted by mail and the findings are summarized herein.

UAE: Exploring Factors Influencing the Adoption of Mobile Commerce
(By Tariq Bhatti)
http://www.arraydev.com/commerce/jibc/2007-12/bhatti_Final.pdf

This study presents an extended technology acceptance model that
integrates innovation diffusion theory to investigate what determine
user mobile commerce acceptance. This paper models the factors
relationships such as perceived usefulness, perceived ease of use,
personal innovativeness, subjective norms, behavioural control and
intention to adopt mobile commerce. The proposed model was empirically
tested using data collected from a survey of mobile commerce
consumers. Empirical data from regression analysis reflects users ease
of use influence behavioural intention to adopt mobile commerce. The
majority of positive relationships between perceived ease of use,
subjective norms, behavioural control and intention to adopt are
supported by empirical data. Results also reveal that behavioural
control and subjective norms influence perceived ease of use that
affects then their adoption intention. The paper concludes some
important implications for the practitioners.

SPAIN: An Analysis of Web Navigability in Spanish Internet Banking
(By Blanca Hernandez-Ortega, Julio Jimenez-Martinez and Jose Martin de
Hoyos)
http://www.arraydev.com/commerce/jibc/2007-12/Blanca_Final.pdf

The Internet has an ever-growing importance in the banking sector
because of the advantages it brings to both the entities and their
customers. However, not all the financial entities that have adopted
e-banking have been successful, often because of an inadequate website
design. A navigable website allows the users to find the information
they want and carry out their operations quickly. The objective of
this paper is to analyse the navigability of the websites of Spanish
financial entities. To do so, different e-tools that determine web
navigability have been identified, defining their importance for a
correct interaction between the entities and the customers.
Furthermore, we have analysed empirically all the Spanish banking
entities with a presence on the Internet and have measured the level
of navigability in the sector.

MALAYSIA: Mobile Devices and Communication: An Analysis
(By Geoffrey H. Tanakinjal, Hanudin Amin, Nelson Lajuni and Jetol
Bolongkikit)
http://www.arraydev.com/commerce/jibc/2007-12/Geoffrey_Final.pdf

Communication through mobile devices is no longer treated as a new
phenomenon. Nevertheless, consumers' attitude towards electronic
marketing applications is still vague from the perspective of
acceptance. Text messaging is currently the best way to keep in touch
when the environment is not conducive to talk which includes being in
a noisy bar, on a crowded train, in a meeting or just do not want to
be overheard. The purpose of this paper was to determine factors that
influence consumer behaviour (mobile phone owners) in communicating
via SMS services. Indirectly, this research will contribute to the
mechanism used by telecommunication service companies to communicate
about their services. By identifying the influential factors and
isolating approaches that will not attract consumer, this can
eventually contribute to the success of introducing new or modified
products and services.

GREECE: A TAM Framework to Evaluate Users' Perceptions Towards Online
Electronic Payments
(By George Rigopoulous and Dimitrios Askounis)
http://www.arraydev.com/commerce/jibc/2007-12/George_final.pdf

Technology Acceptance Model (TAM) is capable of explaining user
behaviour across a broad range of end-user computing technologies and
user populations. In its original form TAM has been extensively
incorporated as a methodology to measure attitude towards technology
adoption from users in multiple domains, as well as within financial
domain. TAM variations have also been proposed and applied for
measuring users' attitude towards adoption of several IT based
services. In this paper we demonstrate a revised TAM model for
measuring users' attitude towards online electronic payments adoption.
We present the model developed, as well as initial results from a
relevant survey at a Greek bank's target users group.

THAILAND: E-Payment Strategies of Bank Card Innovations
(By Jarunee Wonglimpiyarat)
http://www.arraydev.com/commerce/jibc/2007-12/Wonglimpiyarat_Final.pdf

This paper is concerned with the business strategy in managing payment
innovations. Particularly, the study looks at the smart card -
electronic cash (e-cash) innovation in the financial service industry.
The smart card e-cash has yet to overcome obstacles to its diffusion.
Given the e-commerce opportunity, banks and non-banks compete to
deploy smart card technology for Internet use. A review of previous
payment innovations is also carried out to provide suggesting
direction on the innovation proliferation. The paper firstly examines
the payment market on the whole (the global review). The subsequent
section discusses the challenges in the e-payment world and the
strategies to support the diffusion of the smart card innovations.

PAKISTAN: E-Business in Pakistan: Opportunities and Threats
(By Ghulam Muhammad Kundi)
http://www.arraydev.com/commerce/jibc/2007-12/Kundi_final.pdf

Several studies of eBusiness in developing countries have emphasized
the influence of obstacles related to PCs-penetration, cultural and
economical infrastructure, and regulatory environment as major
determinants of eBusiness success. IT has revolutionized the way
organizations conduct business round the globe. Now business is
conducted online (eBusiness) instead of conventional means. In
Pakistan, eBusiness is facing both technical and non-technical issues
from management perspectives. A huge body of research is going on to
unfold the key issues of eBusiness. This paper focuses on the key
components of each of the above-mentioned issues, e.g. cultural issues
i.e. language, shopping habits, and use of credit etc.

The primary data collected through structured questionnaires was
analyzed and tested through correlation, regressions' analysis and
t-test. It has been found that all independent variables: economic,
political, business, cultural and marketing is mutually correlated and
has significant impact on shaping and reshaping of eBusiness in
Pakistan. Moreover, management implications along with possible
solutions to the barriers of eBusiness in Pakistan are presented.

MALAYSIA: Internet Banking Adoption Among Young Intellectuals
(By Hanudin Amin)
http://www.arraydev.com/commerce/jibc/2007-12/Hanudin_Final.pdf

The aim of this paper is to study technology acceptance of Internet
banking among undergraduate students in Malaysia. Thus, the
theoretical framework of the paper is based on modified version of
Technology Acceptance Model (TAM). This paper develops a technology
acceptance model for Internet banking, a conceptual framework to
explain the factors influencing undergraduate students' acceptance of
Internet banking.

The model employs perceived usefulness (PU), perceived ease of use
(PEOU), perceived credibility (PC) and computer self-efficacy (CSE).
The first two are two initial constructs for TAM model. The rest are
new constructs to be included in the model in order to have an
extension of TAM model that better reflects the students' view. The
results suggest that PU, PEOU and PC had a significant relationship
with behavioural intention. Further, these measures are good
determinant for undergraduate acceptance for Internet banking. Results
also suggest that PU and PEOU had a significant relationship with CSE.
On the contrary, CSE did not associate with PC. Also, PEOU had a
significant relationship with PU and PC that indicate these scales are
related to PEOU in explaining undergraduate preference. The paper is
useful in providing the understanding of the TAM among undergraduate
from Malaysians' perspective.

======================
OPINION ARTICLES
======================

INDIA: Glimpses for Effective Implementation of Virtual Trainer
(By S. Arumunga Perumal)
http://www.arraydev.com/commerce/jibc/2007-12/Arumuga_perumal_FinAL.pdf

This paper discusses and suggests some ideas and necessary changes in
implementation of virtual trainer in an organization. With the
invention of new technologies like high speed computer networks and
multimedia computers, there is an increasing awareness that direct
face to face teaching is not the only possible mode of training
methodology in an organization. There is a demand for preparing high
quality multimedia training material across all faculties, which can
be used by learners of the course who either cannot attend the live
lectures or prefer to study in an off-line mode. Assignments, Seminars
and evaluations are done though on line mode. A new trend in
implementing virtual trainer in Multi-user Virtual Reality system is
discussed in this paper. The awareness of computer-based training is
analyzed with employees of different categories. This method also
leads to the development of effective implementation of web based
virtual trainer through out the world in the near future.

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=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Editor-in-Chief: Nikhil Agarwal

Deputy Editor-in-Chief: Joshua Fogel

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord
Jenkins

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
South America Contributing Editor: Carlo G. P. Bellini
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of
this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 12 No. 2 August 2007
http://www.arraydev.com/commerce/jibc/current.asp

======================
From JIBC Publisher Nahum Goldmann
http://arraydev.com/commerce/JIBC/0708/0708-Publ_PDFVersion.pdf
======================

From time to time it might be useful to look anew at various pages on
the JIBC Web site. Today I invite you, our esteemed reader, to join us
in a virtual travel to our Editorial Board page
http://www.arraydev.com/commerce/JIBC/editors.asp, where you might
find some new faces and some familiar names with the new
responsibilities.  The changes in the Editorial Board reflect the
positive growth of the JIBC academic and professional community.

First, my congratulations to JIBC Editor-in-Chief Prof. Nikhil Agarwal
on his new exciting appointment as the founding head of Zensar Global
Business School in Pune, India. Well done Nikhil!

Second, Prof. Joshua Fogel, who for the last couple of years has been
spearheading JIBC academic reference publications activities and,
jointly with Dr. Agarwal, worked on ensuring high academic standard of
JIBC peer-reviewed research papers, has agreed to fill the
newly-established position of the Deputy Editor-in-Chief. JIBC
listings growth in the leading academic reference publications and
search engines (see
http://www.arraydev.com/commerce/jibc/guides.htm#Listing) is a good
reflection of Joshua's activities. Again, my sincere thanks to Nikhil
Agarwal, Joshua Fogel, our Managing Editor Xin "Robert" Luo and
Mailing List Managing Editor Anne-Marie Jennings for their determined
effort in putting together this highly regarded publication that deals
with the innovation in e-commerce, e-business and e-banking areas.

I would also like to welcome a new Contributing Editor from the Latin
America, Prof. Carlo G. P. Bellini from Universidade Federal da Paraba
(UFPB) at João Pessoa, Brazil (which has a distinction to be the
easternmost city of the Americas!) We have high hopes for Dr.
Bellini's participation at the JIBC Editorial Board and are especially
happy that our editorial representation of high economic growth BRIC
countries (Brasil, Russia, India and China) has been heightened. We
are looking forward to new exciting contributions from these countries.

Speaking of the positive growth, I have read with particular interest
the article of Guosong Shao from University of Alabama on the
diffusion of online banking: research trends in the current JIBC
issue. This quantitative study clearly reflects the growth in JIBC's
academic stature. Clearly, our comprehensive multi-subject publication
is among the subject leaders even when compared with the most
reputable international publications that specialize in e-commerce and
e-banking innovation.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe.  On page
http://www.arraydev.com/commerce/JIBC/current.asp you will find links
to posting our publication to Digg this, del.icio.us and Slashdot.
Please share information about JIBC articles with the Internet
community and suggest to us new ways to promote JIBC among the
academic and professional communities around the globe.

As well, I am challenging all the current and past authors and editors
to email your own articles - along with the rest of JIBC edition - to
at least 10 of your peers and colleagues in academia, government and
industry. Make sure they are aware of your articles and the Journal of
Internet Banking and Commerce. Recommend that they also subscribe to
email editions. After all, we send it around just 3-4 times a year.

A special appeal to e-commerce/e-business students to pass a word
about JIBC to your professors and classmates and, more important, to
ask them to supply new articles and tell everybody to subscribe.

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and academic reference
publications. Also, if you notice publications referring to JIBC
articles, please let us know.

Let's spread the word!

======================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2007-08/EditorialNote_PDFVersion.pdf
======================

Sub-prime market tremors were felt across the world. In many Asian
countries tremors have taken shape of tsunami. One of my colleagues
jokingly attributed the situation as global warming of economy. I
would agree with him to certain extent, the global climate change of
economy is not yet over. In another major development, London
Inter-Bank Offer Rates (LIBOR) have jumped to a 20-year record as
senior bankers, economists, financial analysts and traders warn that
central banks have not properly understood or recognised the dangers
ahead. Few economists in London were heard saying" "this is a storm in
a tea cup and it will soon blow over, enjoy the holidays!" Till then,
we are keeping our finger crossed. I would urge our readers/authors to
highlight the cases in their home country like what are the measures
government is taking, what is the sentiment in the domestic industry,
how is the overall environment of the economy. Please do submit short
articles on any of the related themes.

I am pleased to announce that JIBC has partnered with Worldwide
Business Research to provide academic support to ProcureCon Indirect
USA 2008 http://www.wbresearch.com/procureconindirectusa to be held
between January 29th-30th, 2008 at Atlanta, GA. Worldwide Business
Research has offered a 15% discount to JIBC readers who wish to attend
Procure Indirect USA 2008. Please contact Ms. Amy Rae Stephenson for
any further information at  amyrae.stephenson@... . Kindly,
make it convenient to attend.

Please join me in congratulating Dr Joshua Fogel who has agreed to
assume a larger role in JIBC. Dr Fogel is now elevated to Deputy
Editor-in-Chief. Also, I would take this opportunity to welcome Dr.
Carlo G. P. Bellini from beautiful Brazil to join us on editorial
board. Dr Bellini Associate Professor of Information Systems and
Vice-Head of the Graduate School of Management at the Centre for the
Applied Social Sciences (CCSA), Universidade Federal da Paraba (UFPB)
at João Pessoa, Brazil the Easternmost city of the Americas.

In this issue we have 11 articles from 3 continents & 8 countries.
Guosong Shao of University of Alabama has written excellent article
providing a detailed picture of research trends and rigorousness in
online banking research. Ki Soon Lee, Hyung Seok Lee and Sang Yong Kim
from South Korea have highlighted the factors influencing the adoption
of mobile banking services in South Korea. Khalil Md Nor and J.
Michael Pearson have worked on 'softer' side of internet banking, i.e.
Trust. They argued in online environment, trust has been suggested to
play an important role in influencing one's acceptance of an innovation.

Our old friend & now a regular author Goi Chai Lee has written an
interesting paper on correlation between Internet & ICT, website
development & Internet marketing. His paper reflects the perception of
marketers in Malaysia & Singapore. In another paper from Malaysia,
Yahya Dauda, A. Solucis Santhapparaj and David Asirvatham discussed
the impact of ecommerce security, and national environment on consumer
adoption of Internet Banking in Malaysia and Singapore.

In an interesting article from Turkey Murat Hakan Altıntas and Necmi
G'rsakal surveyed complaints from 200 bank customers to analyze the
phishing attacks and perceptions of service quality in Turkish banks.
Charles K. Ayo, Uyinomen O. Ekong, Adebiyi Ayodele A. and Fatudimu
Ibukun Tolulope from Nigeria discusses the trends & issues in
M-Commerce implementation in Nigeria. Bruce Budd & Daniel Budd from
UAE have done a preliminary empirical investigation of
"Brick-to-Click" banking presence in the UAE.

Ela Kumar & Shruti Kohli from India, in their opinion article, has
done strategic analysis of search engine advertising in web-based
commerce. In another opinion article N.P. Singh gives a detailed
overview of phishing attacks and its implication on the banking industry.

From this issue we are restarting our old service of book-reviews.
Arthur J. Cordell & Prabir K. Neogi has done excellent review of
Internet Governance: An Introduction by Ravi Kumar Jain Bandamutha
(ed). I would request the editors/authors to submit at least 3 such
reviews in every issue. Though we believe in online content, still we
would not undermine the power, knowledge & satisfaction of reading a
good book.

Please write to me for your feedback. We strongly value your feedback.
We are now working on the new look of JIBC. Hopefully, we would
surprise you with something "kool" in the next issue.

Have a profitable year ahead.

======================
OPINION ARTICLES
======================

INDIA: Online Frauds in Banks with Phishing
(By N. P. Singh)
http://arraydev.com/commerce/jibc/2007-08/Singh_final_PDFReady.pdf

Hi-tech fraudsters have urbanized a new way of tricking on line
banking customers. One such most well-known and fast-growing technique
is phishing. The latest in phishing is application of Trojan horse
program. Trojan horse" program insinuates itself into a user's
computer via e-mail and directs the user of the system to website
which is exactly similar to financial institution web site. Crooks
pick up passwords and account numbers as soon as customer logon to
these sites. Keeping in view the serious threats of phishing attacks,
the author analyzes the trends of major activities of the phishing
across globe specifically in the banking sector.

UAE: A Preliminary Investigation of "Brick to Click" Banking Presence
in the United Arab Emirates
(By Bruce Budd and Daniel Budd)
http://arraydev.com/commerce/2007-08/Bruce_final_PDFReady.pdf

This preliminary study undertakes to investigate the extent and
quality of electronic banking (e-banking) in UAE.  Banks worldwide are
now moving rapidly to an era of technological change. Online versions
of most existing payment methods are appearing rapidly bringing about
profound changes in the whole system of financial services and
intermediation.  While many banks especially in Europe and the U.S.
have adopted Internet banking, this research shows that the majority
of banks in U.A.E. are still in the early stages of developing e-banking.


MALAYSIA: Correlation Between Internet and ICT, Web Development and
Internet Marketing: Perception of Marketers in Malaysia and Singapore
(By Chai Lee Goi)
http://arraydev.com/commerce/jibc/2007-08/ChaiLeeGoi_finalReady.pdf

The main objective of this study is to review the adoption of Internet
and ICT, Web site development and Internet marketing, as well as to
study the correlation between these three factors. This study also
tries to study marketers' perception in Malaysia and Singapore on the
implication of the Internet and ICT on Web site development and
implication of Web site development on Internet marketing. The overall
of 200 samples shows that the correlation between the Internet and
ICT, Web site development, and Internet marketing are positive. The
analysis of each country, Malaysia and Singapore also shows that there
are positive correlations for all the variables. The study proved that
the Internet and ICT have a statistically significant positive impact
on Web site development in Malaysia and Singapore. The study also
concluded that Web site development has a statistically significant
positive impact on the Internet marketing in Malaysia and Singapore.

INDIA: A Strategic Analysis of Search-based Advertising in Web-based
Commerce
(By Ela Kumar)
http://arraydev.com/commerce/jibc/2007-08/shruti_finalReady.pdf

This paper explores the role of the search engine in the online
business industry. This paper discusses the Search Engine advertising
programs and provides an insight about the revenue generated online
via Search Engine.  It explores the growth of the online business
industry in India and emphasises the role of search engines as the
major advertising vehicle. A case study on revolution of Indian
Advertising Industry has been conducted and its impact on online
revenue evaluated.

=============================
PEER REVIEWED RESEARCH PAPERS
=============================

USA: The Diffusion of Online Banking: Research Trends from 1998 to 2006
(By Guosong Shao)
http://arraydev.com/commerce/jibc/2007-08/shao_finalReady.pdf

This paper provides a detailed picture of research trends and
rigorousness in online banking research. Through content analysis, it
examines the frequency, occurrence patterns, research topics, and
methodological status of all previous online banking articles (N =
54). The findings of this study reveal a dominance of articles dealing
with the attributes of online banking and the characteristics of
adopters. The findings also show an obvious unbalance in publication
sources, research perspective, research methods, and sampling
techniques in online banking research. It is thus concluded that more
diversified topical coverage and better methodological rigors are
needed in future online banking studies. As the only trend research on
online banking, this paper offers useful trend information as well as
insightful directions for future research.

SOUTH KOREA: Factors Influencing the Adoption Behaviour of Mobile
Banking; A South Korean Perspective
(By Ki Soon Lee and Song Yong Kim)
http://arraydev/com/commerce/jibc/2007-08/hyungseoklee_finalReady.pdf

The objective of this study was to identify factors influencing the
adoption of mobile banking service. We specifically focused our
attention on perceived risk, perceived usefulness, and trust in mobile
banking adoption. This study modified the concept of a technology
acceptance model (TAM) within the context of mobile banking. It
introduced "perceived risk" and "trust" in a proposed model to reflect
consumers' needs to use mobile banking. In addition to the
satisfactory fit level of our proposed model, we concluded that
perceived risk indirectly influences adoption behaviour but only when
it was via trust. Using the mobile banking service context, we also
obtained strong empirical evidence for measuring perceived risks'
dimensions. Evidence for a composite perceived risk variable was
identified. We found the strong inhibiting effect of perceived risk on
trust. This result encouraged the decomposition of the perceived risk
variable into its theorized dimensions. The financial-performance risk
dimension proved to be the most salient concern for this sample and
its context. Trust also had stronger influence on the adoption
behaviour of mobile banking than perceived usefulness, which was used
as an important variable in the traditional TAM variables.

MALAYSIA AND USA: The Influence of Trust on Internet Banking
(By Khalil Md Nor and J. Michael Pearson)
http://arraydev.com/commerce/jibc/2007-08/md_nor_finalReady.pdf

The theory of diffusion of innovation (IDT) has been widely used to
examine factors that influence an individual to adopt an innovation or
a new technology. In online environment, trust has been suggested to
play an important role in influencing one's acceptance of an
innovation. The purpose of this study is to test empirically the
influence of trust together with some of the attributes of IDT on
Internet banking acceptance.

MALAYSIA: The Impact of e-Commerce Security, and National Environment
on Consumer Adoption of Internet Banking in Malaysia and Singapore
(By Yahya Duda, A Soulcis Santhapparaj, David Asirvatham, and Murali
Raman)
http://arraydev.com/commerce/jibc/2007-08/murali_finalReady.pdf

One of the haunting problems of Internet banking in Malaysia is the
slow in acceptance of this innovative distribution channel for banking
products and services. This paper addresses the perceived e-commerce
security influence on adoption of Internet banking, and the role of
national environmental factors such as attitude, subjective norms, and
perceived behavioural control factors towards adoption, and compares
these factors with Singapore Internet banking adoption.

TURKEY: Phishing Attacks and Perceptions of Service Quality: A Content
Analysis of Internet Banking in Turkey
(By Murat Hakan Altintas and Necmi G'rsakal)
http://arraydev.com/commerce/jibc/2007-08/hakan_finalReady.pdf

In Internet banking, which is a trust-based system, phishing attacks
and Internet fraud can affect the customers' view of the service
quality provided by the banks. Theft of the customers' personal
identity information can cause the customers to lose their confidence
in the system and their banks. Within this context, content analysis
was used to develop an examination of the complaints of 200 bank
customers. The present analysis only contains the customers who had
experienced money transfer problems as a result of Internet fraud. As
a result of the study, the deficiencies in the service quality were
classified into 41 basic groups, which were then arranged into and 6
dimensions. The importance of each dimension, as measured by the
frequency of their occurrence, was then determined. The results
obtained provide some suggestions for the banks on how to approach
customers who have experienced such problems, and the things they
should they provide in terms of customer care services.

NIGERIA: M-Commerce Implementation in Nigeria: Trends and Issues
(By Charles K. Ayo and Adebiyi Ayodele A.)
http://arraydev.com/commerce/jibc/2007-08/ayo_finalReady.pdf

Nigeria was described as the fastest growing telecoms nation in Africa
and the third in the World. The country had experienced a phenomenal
growth from a teledensity of 0.49 in 2000 to 25.22 in 2007. This trend
has brought about a monumental development in the major sectors of the
economy, such as banking, telecoms and commerce in general. This paper
presents the level of adoption of ICT in the banking sector and
investigates the prospects of m-Commerce in Nigeria based on
strengths, weaknesses, opportunities and threats (SWOT) analysis.
Findings revealed that all banks in Nigeria offer e-Banking services
and about 52% of the offer some forms of m-Banking services. The banks
and the telecoms operators have enormous potentials and opportunities
for m-Commerce but the level of patronage, quality of cell phones,
lack of basic infrastructure and security issues pose a major threat
to its wide scale implementation.


=============
BOOK REVIEW
=============

CANADA: Internet Governance: An Introduction
(By Arthur J. Cornell and Prabir K. Neogi)
http://arraydev.com/commerce/jibc/2007-08/Cordell_Book_Review_finalReady.pdf

Internet Governance: An Introduction offers a complete guide to the
"ins and outs" of Internet governance.  Drawing on a range of
international authors Internet Governance is best suited for those
seeking an overview of the range of issues involved as the Internet
becomes increasingly important to business and to society in general,
affecting the daily lives of millions of people around the world.

/---------------------CALL FOR PAPERS-------------------\

Call for Paper for Ecommerce & Internet Governance conference

La Rochelle Business School, Laval University (Canada), University of
Poitiers & University of Sfax are pleased to announce the First Global
Conference on "eCommerce & Internet Governance", October 19-20, in
Sousse (Tunisia) with the Information and Management Association
(AIM), The International Telecommunication Society (ITS), The Internet
Society (ISOC France, Quebec et Tunisia), The Journal of Internet
Banking and Commerce and the support of the European Social Fund.

This conference seeks to establish a vibrant and constructive global
dialogue between senior industry executives, investors, central
bankers, government policymakers and leading academics on how to
radically improve eCommerce effectiveness and Internet Governance
which includes the governance of Internet infrastructures, the
governance of the content exchanged through the Internet, and the
governance of organisations in the context of the information society.
\---------------------CALL FOR PAPERS-------------------/


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=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Editor-in-Chief: Nikhil Agarwal

Deputy Editor-in-Chief: Joshua Fogel

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord
Jenkins

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
Latin America Contributing Editor: Carlo G. P. Bellini
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of
this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 12 No. 1, April 2007
http://www.arraydev.com/commerce/jibc/current.asp

=================================
From JIBC Publisher Nahum Goldmann
http://arraydev.com/commerce/JIBC/0704/0704-Publ_PDFVersion.pdf
=================================

On the New Format and the Very Same People

As you start to read our newly re-constituted Journal in the
PDFformat, I am certain that you wouldn't help but feel that JIBC has
moved to a higher quality level. The articles look more professional
and are much easier to read. According to the Managing Editor Dr. Xin
"Robert" Luo, who prepared this new issue and placed it on the Web, at
  least 90% of all submissions were presented fully according to the
template, which makes his task much easier.

Readability of PDF files is also evidently higher than that for the
HTML.  JIBC Chief Editor Prof. Nikhil Agarwal and Contributing Editor
Prof. Joshua Fogel have actively supported Robert in the transition to
a new format. My sincere thanks to them and to the numerous authors --
and readers -- who collectively make our publishing effort worthwhile.

Robert also asked me to share a good news with you that JIBC is now
being indexed in Cabell's lists. JIBC section on Listings in Search
Engines and Reference Publications
(http://www.arraydev.com/commerce/jibc/guides.htm#Listing) already
reflects this new achievement. JIBC is currently represented in:

• EBSCO Business Source Complete
• EBSCO Business Source Premier
• EBSCO A-to-Z Service
• Cabell's Directory of Publishing Opportunities in Economics and Finance
• Cabell's Directory of Publishing Opportunities in Computer Science
   and Business Information Systems
• DOAJ, the Directory of Open Access Journals
• Google search engine
• Yahoo search engine

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and academic reference
publications.  Also, if you notice publications referring to JIBC
articles, please let us know.

On page: http://www.arraydev.com/commerce/JIBC/current.asp you can
find now links to posting our publication to Digg this, del.icio.us
and Slashdot. Please share information about JIBC articles with the
Internet community and suggest to us new ways to promote JIBC among
the academic and professional communities around the globe.

On a personal note, good news as relates to JIBC Contributing Editor
Edwin Jacobs is that Edwin has recently became the head of the TMT-IP
(Technology, Media, Telecom - Intellectual Property) department of a
leading independent law firm Monard-D'Hulst in Brussels. Well done!
For those of you who are looking for a foremost European legal expert
in the IP law, a stop at Edwin's offices in Brussels might be a
logical choice.

Frankly, as the Publisher, I am always delighted to hear that editors
and authors associated with JIBC excel both professionally and
personally.  Please do email me information of your recent
achievements that might be of particular interest to our professional
and academic readership.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe.

As well, I am challenging all the current and past authors and editors
to email your own articles -- along with the rest of JIBC edition --
to at least 10 of your peers and colleagues in academia, government
and industry.  Make sure they are aware of your articles and the
Journal of Internet Banking and Commerce. Recommend that they also
subscribe to email editions.  After all, we send it around but 2-3
times a year.

A special appeal to ecommerce/ebusiness students to pass a word about
JIBC to your professors and classmates and, more important, to ask
them to supply new articles and tell everybody to subscribe.

Let's spread the word!

=============================================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2007-04/EditorialNote_PDFVersion.pdf
=============================================

First issue of year always brings smile on the face. The year not new
enough to say happy new year, still I would give wishes for the
remaining months. May the money Gods shine on you.

I am pleased to announce that JIBC is supporting Ecommerce and
Internet Governance conference (ECIG2007), October 19th - 20th 2007,
Sousse (Tunisia) [www.ecig2007.org]. The conference is organized by La
Rochelle Business School (France); Laval University (Canada),
University of Poitiers (France) & University of Sfax (Tunisia) along
with The Information and Management Association (AIM), the
International Telecommunication Society (ITS), The Internet Society
(ISOC France, Quebec et Tunisia), The Journal of Internet Banking and
Commerce and the support of the European Social Fund. This conference
seeks to establish a vibrant and constructive global dialogue between
senior industry executives, investors, central bankers, government
policymakers and leading academics on how to radically improve
eCommerce effectiveness and Internet Governance which includes the
governance of Internet infrastructures, the governance of the content
exchanged through the Internet, and the governance of organisations in
the context of the information society. The best papers would be
published by JIBC as part of special issue after the conference. I
would request you all to mark your diaries and visit the conference to
enjoy the wonderful Tunisian hospitality. For further information on
the conference, please contact our Editor Professor Jean-Michel SAHUT
[sahutjm[at]esc-larochelle.fr]

In current issue we have 10 articles. The 10th Annual Digital Money
Forum was held in London in March 2007. Dave Birch summarizes his
personal observations on first decade of digital money. Continuing on
his work on SWIFT, Edwin Jacobs gives further analysis of Safe Harbor
framework of the European data privacy legislation.

Abdullah S. Al-Mudimigh in his paper evaluates the success of the
e-business model and e-business strategy implemented by Citibank in
the United Arab Emirates in offering its retail Internet Banking
Service; Citibank Online. Tomas Hes talks about innovations in
investment in Mexico and overview of Electronic Loan Exchange Network,
ELEN Project in development between group of Czech elite bankers, IT
specialists and FIPS, prime Mexican microfinance institution.

Carin Holroyd highlights how Japan, through triple helix of
university-industry- government, remains frontrunner in global
innovation race. Sunil Khandelwal and Dayanand Pandey discuss the
risks involved in large value payment system (LVPS), economic
dependency and measures to control these risks. Goi Chi Lee has
comprehensively reviewed the existing web site models for e-commerce,
a good material for future research.  Daniel Nilsson explains that
self-service technology is easy for consumers but not problem free. He
explores the gaps between seller support, third party and SSTs. B.A
Ranjith Appuhami investigate the impact of the value creation
efficiency on investors' capital gain on shares in Thailand. Sven
Christian Berger, through his extensive survey, draws insights on
online banking consumer characteristics.

You would be glad to know that JIBC is now listed by prestigious
Cabell's lists. You must have noticed the new look in our publication
format (pdf). We value your support and seek continuous feedback. We
are working harder to keep JIBC top-notch publication in its area.
Please feel free to write to me for any further
improvement/enhancement you would like to see, we will do our best.

Have a profitable year ahead.

======================
OPINION ARTICLES
======================

UNITED KINGDOM: The Digital Money Decade
(By David Birch)
http://www.arraydev.com/commerce/jibc/2007-04/22_DM10_PDFVersion.pdf

The tenth annual Digital Money Forum, held in London at the end of
March, was a good opportunity to see how the world of retail
electronic payments has evolved in last decade. It looks as if the
technology platforms of smart cards, wireless communications, mobile
phones and cryptography are coming together within a regulatory
framework to make the often discussed "war on cash" something more
than just talk. The prospect of simple, inexpensive payments across
all retail channels - with the attendant benefits in trade and market
growth - is real and it is already clear that a technology nexus
around, in particular, the mobile handset and contactless payments is
going to make real difference in the way that the average person pays.


BELGIUM: SWIFT Privacy: Data Processor Becomes Data Controller
(By Edwin Jacobs)
http://www.arraydev.com/commerce/jibc/2007-04/JACOBS-PDFVersion.pdf

Last month, SWIFT emphasised the urgent need for a solution to
compliance with US Treasury subpoenas that provides legal certainty
for the financial industry as well as for SWIFT. SWIFT will continue
its activities to adhere to the Safe Harbor framework of the European
data privacy legislation. Safe Harbor is a framework negotiated by the
EU and US in 2000 to provide a way for companies in Europe, with
operations in the US, to conform to EU data privacy regulations. This
seems to conclude a complex privacy case, widely covered by the US and
European media. A fundamental question in this case was who is a data
controller and who is a mere data processor. Both the Belgian and the
European privacy authorities considered SWIFT, jointly with the banks,
as a data controller whereas SWIFT had considered itself as a mere
data processor that processed financial data for banks. The difference
between controller and processor has far reaching consequences.


SAUDI ARABIA: E-Business Strategy in an Online Banking Service: A Case
Study
(By Abdullah S. Mudmigh)
http://www.arraydev.com/commerce/jibc/2007-04/AbdullahFinal_PDFVersion.pdf

Banks today are aware of both the threat and the opportunity that the
Web represents.  No traditional bank would dare face investment
analysts without an Internet strategy. But even a detailed and
thoughtful approach to the Web does not guarantee business success.
The main purpose behind the launching of online banking services is to
provide the customers with an alternative, more responsive and with
less expensive options.  With options just a click away, customers
have more control than ever. They expect real-time answers and
superior usability. They also want personal attention and highly
customized products and services. The focus of e-business must always
be on the customer. On the other hand, the technology and the business
structure follow on form of the value you intend to provide to the
customer.

This paper evaluates the success of the e-business model and
e-business strategy implemented by Citibank in the United Arab
Emirates in offering its retail Internet Banking Service; Citibank
Online.

GERMANY: Investment Capital Flows, Mexican Economics and Electronic
Loan Exchange Project
(By Tomas Hes)
http://www.arraydev.com/commerce/jibc/2007-04/TomasHes_PDFVersion.pdf

Private capital flows to emerging markets continue at high levels, but
concerns are growing about their sustainability. Direct equity
investment slows down, as well as lending by bond investors and
private creditors. The potential global impact of a US economy
slowdown, global financial imbalances and geopolitical tensions
present motives for cautiousness. Situation in Mexico, the world's
ninth largest economy, seems favorable, but confirms written above.
Mexico's FDI rises, but slow down is expected: and with more than 40%
of the population living below official poverty line, the inequality
continues rampant.

Fortunately, there are innovations unseen ever before   promising ways
how to tackle the lack of investment. Electronic Loan Exchange
Network, ELEN Project in development between group of Czech elite
bankers, IT specialists and FIPS, prime Mexican microfinance
institution. Goal of this ambitious endeavor is to enable tens of
millions of small European and US investors to lend for attractive
interest rate to poor micro-borrowers in marginalized regions on a
massive scale, thus creating an alternative for savings accounts and
stock market investments.

=============================
PEER REVIEWED RESEARCH PAPERS
=============================

CANADA: Japan Tech: The Foundation of the Innovation Revolution
(By Carin Holroyd and Ken Coates)
http://www.arraydev.com/commerce/jibc/2007-04/CarinHolroydFinalApril2007_
PDFVersion.pdf

All industrial nations agree that scientific and technological
innovation holds the key to 21st-century economic prosperity and
competitiveness. Japan has responded to the challenges and
opportunities of the current environment by investing heavily in basic
science and emphasizing efforts to commercializing new discoveries and
technologies.  Japan's ability to marshal the resources of government
research units, the private sector and a reformed public university
system has been matched by substantial government investments and
policy initiatives designed to ensure that the country stays at the
forefront of the global innovation movement.


UAE: Risks in Large Value Payment Systems
(By Sunil Khandelwal and Dayanand Pandey)
http://www.arraydev.com/commerce/jibc/2007-04/DNPandeyDubai_PDFVersion.pdf

Payment system is an integral part of the entire banking system in
every country. Payment systems in centrally planned economies differ
greatly from market-driven economies. Almost all market-driven
economies depend heavily on latest technology for efficient
functioning of payment systems. The same technology is also a source
of risks, which are found only in technology oriented payment systems,
such as systemic risk. The discussion on LVPS assumes important
dimensions due to its direct implications on financial market. The
efficient functioning of payment system is necessary for the efficient
functioning of the financial sector. Strong and sound payment system
is required not only for long-term stability of financial system but
also for trouble free day-to-day working of settlements. The
transaction on the financial market, generate risks for counterparties
who undertake them, for the bankers, for the other intermediaries and
for the central bank. The risks are greater in the case of LVPS. The
disturbances in these settlements can have wider repercussions for the
financial system and the economy as a whole. Due to application of
technology the time taken for settling the transactions has been
drastically reduced increasing to large volume exposures. The
structure of payment system determines the type of risk, who bears the
risks and the vulnerability of the system.

MALAYSIA: A Review of Existing Website Models for E-commerce
(By Chai Lee Goi)
http://www.arraydev.com/commerce/jibc/2007-04/GoiChaiLee_PDFVersion.pdf

On reviewing the literature it became evident that previous
researchers adopted a high-level approach to the development of Web
site design models. The models were designed to be adapted to multiple
industries resulting in broad categories. The literature has uncovered
three main ways of classifying Web sites. The digital business model,
e.g. Wen, Chen and Hwang (2001) and Schneider and Perry (2001)
describe ways in which business can be conducted over the Web. The
stages of development model, e.g. Ho (1997), Burgess and Cooper
(1999), Boon, Hewett and Parker (2000), Lowe (2001), Becker (2002) and
Davidson (2002) describes different stages of development with
functionality mapped to each stage. In scoring systems, e.g. Elliot
(2002), Cast Bobby (1999) and Gartner (2002), specific features of a
Web site are identified and given a score.

SWEDEN: Internet Banking and the Impact of Seller Support and Third Party
(By Daniel Nilsson)
http://www.arraydev.com/commerce/jibc/2007-04/NilssonFinal_PDFVersion.pdf

An explosion of new technologies has taken place within the retail
environment. More and more service providers have begun to use a wide
range of technologies that allow consumers to produce and use the
services by themselves, without direct contact from the employees of
the firm. However, usage of services in new technologies is rarely
problem-free; consumers may encounter obstacles during the
interaction. This article examines what influence seller support and
the third party, as sources for assistance, has on consumers' usage of
SSTs.

SRI LANKA: The Impact of Intellectual Capital on Investors' Capital
Gain on Shares: An Empirical Investigation of the Thai Banking,
Finance and Insurance Sector
(By B.A. Ranjith Appuhami)
http://www.arraydev.com/commerce/jibc/2007-04/RanjithFinal_PDFVersion.pdf

The purpose of this article is to investigate the impact of the value
creation efficiency on investors' capital gain on shares. The author
used the data collected from listed companies in Thailand stock market
and Pulic's (1998) Value Added Intellectual Coefficient (VAIC TM) as
the measure of intellectual capital and developed multiple regression
model to investigate the impact of corporate value creation efficiency
on investors' capital gain. The empirical research found that firms'
intellectual capital has a significant positive relationship with its
investors' capital gain on shares. The findings enhance knowledge base
of intellectual capital and develop a concept of intellectual capital
in achieving competitive advantages in emerging economies such as
Thailand.

GERMANY: Online Banking Customers: Insights from Germany
(By Sven Christian Berger)
http://www.arraydev.com/commerce/jibc/2007-04/SvenBergerFinal_PDFVersion.pdf

Online banking is wide spread among German banking customers. But what
really characterizes those customers? Using data from a nation-wide
survey of about 20,000 retail-banking customers, the authors analyze
the profile of online banking customers and their banking behavior.

/---------------------CALL FOR PAPERS-------------------\

Call for Paper for Ecommerce & Internet Governance conference

La Rochelle Business School, Laval University (Canada), University of
Poitiers & University of Sfax are pleased to announce the First Global
Conference on "eCommerce & Internet Governance", October 19-20, in
Sousse (Tunisia) with the Information and Management Association
(AIM), The International Telecommunication Society (ITS), The Internet
Society (ISOC France, Quebec et Tunisia), The Journal of Internet
Banking and Commerce and the support of the European Social Fund.

This conference seeks to establish a vibrant and constructive global
dialogue between senior industry executives, investors, central
bankers, government policymakers and leading academics on how to
radically improve eCommerce effectiveness and Internet Governance
which includes the governance of Internet infrastructures, the
governance of the content exchanged through the Internet, and the
governance of organisations in the context of the information society.
/---------------------CALL FOR PAPERS-------------------\


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\---------------------ADVERTISEMENT-------------------/



=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Chief Editor: Nikhil Agarwal

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord
Jenkins

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
US Contributing Editor: Joshua Fogel
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of
this Web site to: array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 11, No. 3, December 2006
http://www.arraydev.com/commerce/jibc/current.asp

=================================
From JIBC Publisher Nahum Goldmann
http://arraydev.com/commerce/JIBC/2006-12/06012-Publ.html
=================================

PDF: A New Format

For the last 10 years we have been publishing JIBC in the HTML format;
to be technically correct in last 5 years in its latest standard
adaptation of xHTML 1.0 Strict. This decision was good for its time
and, as a result, JIBC is well represented in the leading search
engines, blogs and alike.

The Editorial Board feels that it is time to move ahead and start
publishing JIBC in the PDF format. Spearheaded by Prof. Joshua Fogel
and with the active participation of our Chief Editor Prof. Nikhil
Agarwal and Assistant Editor Dr. Xin "Robert" Luo, this effort came to
fruition in the new version of JIBC Submission Template
(http://www.arraydev.com/commerce/jibc/guides.htm#SubmissionGuidelines.).
The new format will be in full effect starting with the first 2007
issue of the Journal.

The Editorial Board feels that the new format will provide us with the
better technical quality publication. It is also critically important
that the authors will be better able to edit and prepare their
articles, which from now on will have to be submitted in the RTF or
DOC (MS Word ver. 6.0) format.

It is important to note that by now PDF is as much mainstream as is
HTML, and is also being as well indexed in the leading search engines.
Not less important to us is the recently announced but long
anticipated move of Adobe to submit PDF to the international standard
bodies, to be maintained as an open non-proprietary standard.

I would like to use this occasion to thank Joshua Fogel, Nik Agarwal
and Robert Luo for their effort in developing the new publication format.

For those of you who have noticed the new honorific in front of
Robert's name, it is official by now and I'm asking you all to join me
in congratulating Xin "Robert" Luo, PhD, for successfully defending
his doctoral thesis and being installed as a newly minted Assistant
Professor of Computer Information Systems in the Department of
Computer Information Systems of School of Business at Virginia State
University, USA. Well done! We hope that Robert will proceed for many
years with supporting JIBC's publication with his usual efficiency and
quality.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe.

As well, I am challenging all the current and past authors and editors
to email your articles -- along with the rest of JIBC edition -- to at
least 10 of your peers and colleagues in academia, government and
industry. Make sure they are aware of your articles and the Journal of
Internet Banking and Commerce. Recommend that they also subscribe to
email editions. After all, we send it around just 2-3 times a year.

A special appeal to ecommerce/ebusiness students to pass a word about
JIBC to your professors and classmates and, more important, to ask
them to supply new articles and tell everybody to subscribe.

Let's spread the word!

=============================================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2006-12/editorial_December2006.html
=============================================

Wish you a very happy new year 2007.

In Chinese mythology 2007 is a year of Ding Hai or the year of Pig. In
modern world (youth) are celebrating it as year of James Bond (note
007). I would rather agree with modern world. Year 2007 is a year of
economic growth & prosperity as most of the markets around the world
are looking strong. In the last year, the behaviour of different
sectors send mixed signals e.g. Automobiles where restructuring is the
buzzword or take steel where industry is heading towards consolidation
(Arcelor-Mittal, Tata-Corus). It would be interesting to witness the
similar trends in Internet companies. Any ideas?

In this issue we have nine articles from three different continents.
Carlos Flavian and Raquel Gurrea have touched upon the very important
sector the 'fourth state'. They have studied the impact of Internet on
press sector and analysed the possibilities for digital press versus
traditional press. AA Agboola from Nigeria has examined 36 banks for
electronic payment systems and tele-banking services in Nigeria.
Zouhaïer M'Chirgui in his article researched on electronic purse in
France, namely Moneo and discusses the problems preventing a
widespread adoption of Moneo and use by customers/merchants.

Another article from Nigeria, Ayo Charles has examined the prospects
of eCommerce implementation in Nigeria. He argued that developing
country like Nigeria is yet to harness the opportunities from optimal
financial gains. An empirical investigation of the adoption of
Internet Banking in Nigeria is conducted by Chiemeke and Evwiekpaefe.
These articles from African continent further consolidate the academic
interest of people in eBanking and eCommerce.

Hanudin, Hamid, Tanakinjal & Lada investigate the undergraduate
attitude & expectation towards mobile banking. This article takes
special reference on Islamic banking practices in Malaysia by
analysing student's socio-demographic elements. Sakkthivel from India
further discuss the impact of demographics on the consumption of
different services online in India. His research is supported by
primary research conducted at Indian Silicon Valley (Bangalore) to
understand the customer willingness to buy online. Halve and Kulkarni
from IMT, India studied the hospitals in city of Nagpur and proposed
the benefits of patient informatics in health care sector. Awamleh and
Fernandes from Dubai have argued the diffusion of Internet Banking
amongst educated consumers in a high-income non-OECD country. Their
research is supported by primary data and usage of technology
acceptance model (TAM).

At JIBC, we care about the constant feedback we get from our readers
and authors. We are also trying to restructure lot of things like the
way we accept and publish articles. From next issue onwards articles
will be available in PDF format to our readers. We are committed
towards open access philosophy, therefore, it will be openly available
to all who wish to simulate their minds.

Happy Reading and have a profitable year ahead.


================
PEER REVIEWED RESEARCH
================

FRANCE: The Market Difficulty for the Use of the Moneo Electronic Purse
(By Zouhaïer M'Chirgui)
http://www.arraydev.com/commerce/JIBC/2006-12/mchirgui.htm

Whether in other countries the introduction of electronic purse as a
new means for micropayment has known a success (Belgium with Proton
and Hong Kong with Octopus), in France the electronic purse, namely
Moneo, meets with some problems that prevent widespread adoption and
use by customers and merchants. Based on the two most highly
successful schemes - Proton and Octopus - some potential solutions are
proposed, dealing mainly with the technological and economic aspect,
in order to help the adoption and the use of Moneo.

Nigeria: The Prospects of e-Commerce Implementation in Nigeria
(By Ayo Charles K.)
http://www.arraydev.com/commerce/JIBC/2006-12/AYO-Ecommerce.asp

The Internet has brought about the emergence of virtual markets with
four primary distinct characteristics, which are real-time, shared,
open and global (Mohammad, 2003). The growing rate of ICT utilization
particularly the Internet has influenced at an exponential rate,
online interaction and communication among the generality of the
populace. The shortcomings notwithstanding, most people are connected
through their cell phones, home PCs and others through corporate
access and public kiosks. The patronage of the Internet all over the
world is monumental and has remained on the increase from inception.
However, with the enormity of businesses on the Internet, Nigeria is
yet to harness the opportunities for optimal financial gains.

This study is exploratory in nature as it attempts to unveil the
prospects of e-commerce participation based on the
ability-motivation-opportunity (AMO) framework. The paper proposes to
investigate the ability of consumers to purchase online, the available
motivation to do so, and the opportunities for Internet access.

NIGERIA: Electronic Payment Systems and Tele-banking Services in Nigeria
(By Agboola A. A.)
http://www.arraydev.com/commerce/JIBC/2006-12/agboola.asp

This paper examines electronic payment systems and tele-banking
services in Nigeria. Thirty-six out of the 89 banks in Nigeria as of
the end of 2005 were selected for the study. The questionnaire method
was used to gather data from bank workers.

NIGERIA: The Adoption of Internet Banking in Nigeria: An Empirical
Investigation
(By Chiemeke S.C.)
http://arraydev.com/commerce/JIBC/2006-12/chiemeke.html

This study examines the level of adoption of Internet banking in
Nigeria. Twelve large on-line banks that retained their brand names
after the consolidation were studied in terms of the functionality and
interactivity of their websites. The model used is similar to that
proposed by Diniz in 1998, with an additional factor on security
measures. Main factors that inhibit the adoption of Internet banking
in Nigeria are security and inadequate operational facilities
including proper telecommunications and power. The results reveal that
Internet banking is being offered at the BASIC level of Interactivity
with most of the bank having mainly information sites and providing
little Internet transactional services. The level of security of the
banks was also low as most of the banks have not adopted 128 bit
Secure Sockets Layer (SSL) encryption security measures. Most of the
banks perform extremely well in providing up-to date information.
However, further improvements on security and provision of key
ingredients of Internet banking which includes confidentiality,
effective communication integrity and availability, should be
considered in order to satisfy customer's requirements.

MALAYSIA: Undergraduate Attitudes and Expectations for Mobil Banking
By Hanudin Amin, Mohammad Rizal Abdul Hamid, Geoffrey Harvey
Tanakinjal and Suddin Lada)
http://www.arraydev.com/commerce/JIBC/2006-12/JIBC2.htm

This study analyzed the undergraduate students' willingness on
adopting the usage of mobile phone in banking transactions focusing on
Islamic banking in FT, Labuan. Research has been conducted to analyze
the students' attitudes and expectations toward mobile banking.
Furthermore, students' socio-demographic elements were also studied
and analyzed in relation to the study. As noted, sample was taken from
students of Universiti Malaysia Sabah, Labuan International Campus. A
total of 615 students were approached using convenience-sampling
modes. And, the finding illustrate that students tend to learn and
adopt mobile banking in their banking transactions. In addition, the
results also demonstrate students' attitudes and expectations to be
the most consistent explanatory factors in predicting their
willingness on adopting mobile banking usage in the future. In the
nutshell, the findings were in-line with the previous study conducted
by Howcroft, Hamilton and Hewer (2002), Sivanand, Geeta and Suleep
(2004) and Laforet and Li (2005).

INDIA: Impact of Demographics on the Consumption of Different Services
Online in India
(By A.M. Sakkthivel)
http://www.arraydev.com/commerce/JIBC/2006-12/jourintmktgformat1.asp

The role of Internet is becoming inevitable to corporate and society.
Across the world, governments and the corporate sector are
increasingly working towards the better utilization of the Internet.
The Internet, which was initially perceived as a communication media,
is now metamorphosing into a powerful business media. The late 20th
and early 21st century witnessed the entry and exit of the dot.com
companies. The internet motivated many brick & mortar companies to use
the Internet to sell products/services online and found negative
outcomes as the companies failed to understand the internet buyer
behaviour and could not figure out the categories of services the
Internet users intend to buy. In offline marketing, demographics play
a vital role in understanding buying behaviour of consumers belong to
different segments which would enable companies to develop
products/services according to their specific requirements. Internet
is a medium that does not offer this luxury to companies to know the
profile of Internet users as it is an indirect medium. The companies
would do well if they could find the demographic profile of Internet
users that would help them devise strategies accordingly. Hence, the
author conducted an extensive primary research in Bangalore, India
(Silicon Valley of India) in order to identify the willingness of
Internet users to buy different services over Internet. The paper aims
at providing a specific focus to identify the impact of demographics
in influencing Indian Internet users in consuming different services
online. The outcomes would help the corporate world to understand the
importance of demographics on online purchase that could be adopted
and deployed for better use.

INDIA: Study of Hospital Community Awareness Through Patient Informatics
(By Harshavardhan Halve and Vikrant Kulkarni)
http://www.arraydev.com/commerce/JIBC/2006-12/Harsh.html

The development of healthcare facilities is not only influenced by the
opening of healthcare centres and hospitals but more so by their
effective administration and value orientation. If hospitals or the
healthcare centres are well managed, we can't deny
quantitative-cum-qualitative improvement in the healthcare services.
The scope of service now includes healthcare guidance, preventive
care, post-clinical attention, care and advice. Hospitals may handle a
person who is not a patient and hence we call a person visiting a
hospital a customer and not a patient. Like any other business, the
management of hospitals has changed from an art to a science and then
to a technology. Today's hospitals use a lot of medical hardware and
software in healthcare activity. Healthcare decisions are based on
diagnostic aids and assistance through an X-ray, scanning,
pathological tests and knowledge base of case history, etc. The
operational aspect of the healthcare is supported by a lot of
equipment and instruments specially designed for the purpose. The role
played by these aids is so vital and important that it is called
medical engineering. The medical engineering has helped the medical
professionals to reduce the drudgery of health care and concentrate on
diagnosis, prescriptions and treatment. The management of the
infrastructure of equipment and instruments is a very important
management function supporting the effect of offering a distinctive
service to the customer.

UAE: Diffusion of Internet Banking Amongst Educated Consumers in a
High-Income Non-OECD Country
(By Raed Awamleh and Cedwyn Fernandes)
http://www.arraydev.com/commerce/JIBC/2006-12/Awamleh.html

This study analyses the internet banking channels and service
preferences of educated banking consumers in the UAE and examines the
factors influencing the intention to adopt or to continue the use of
internet banking among both users and non users of internet banking.

SPAIN: The Impact of the Internet on Press Sector: New Possibilities
of Digital Press Versus Traditional Press
(By Carlos Flaviãin and Raquel Gurrea)
http://www.arraydev.com/commerce/JIBC/2006-12/RaquelGurrea1.asp

The development of the Internet in recent years is affecting working
of most businesses. The use of new digital formats in the press
industry has produced a real revolution in the concept of the basic
product of their activity. As a result of the increasing development
of journalism on the Internet, the free character of this new service
and the decrease of readers of some major newspapers, an intense
debate has arisen at the heart of the industry about the potential
cannibalism which may exist between the market share of traditional
print newspapers and digital versions. This article analyses this
issue from the marketing perspective and proposes some key factors
which might guarantee a more profitable coexistence of both
traditional print newspapers and the digital press, taking advantage
of the differences that both information formats present.


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firms. Further information is at:
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\---------------------ADVERTISEMENT-------------------/



=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array(at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm
contains all articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum
Goldmann

Chief Editor: Nikhil Agarwal

Founding Chief Editor Emeritus and Member of the
Editorial Board: Gord Jenkins

Assistant Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
US Contributing Editor: Joshua Fogel
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of
this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 11, No. 2, August 2006
http://www.arraydev.com/commerce/jibc/current.asp

=================================
From JIBC Publisher Nahum Goldmann
http://arraydev.com/commerce/JIBC/2006-08/0608-Publ.html
=================================

The credibility of JIBC in the academic, executive and professional
circles is quite high. As the Publisher, I'm getting numerous requests
from academic institutions to permit placement of JIBC articles on
various university and academic networks. Even though strictly
speaking such permission is only required from the copyright holders
(i.e., our authors), to all of our publishing team and the Editorial
Board it serves as a useful indicator of the universal popularity,
respect and innovation for our journal.

Spearheaded by Prof. Joshua Fogel, the JIBC Editorial Board strives to
list our Journal in leading search engines and academic reference
publications. In particular, JIBC is well represented in Google and
Yahoo search engines, the Directory of Open Access Journals and EBSCO.

I am asking fellow JIBC editors, authors and readers to pass to Prof.
Fogel, JIBC Chief Editor Prof. Nikhil Agarwal or myself your
suggestions in which other reference publications we should list JIBC.
Being at the leading edge of the emerging field of study and on the
boundary between various research subjects, JIBC might be listed in
numerous reference databases. Please do help us to spread the news of
its publication around the globe.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe.

As well, I am challenging all the current and past authors and editors
to email your articles -- along with the rest of JIBC edition -- to at
least 10 of your peers and colleagues in academia, government and
industry. Make sure they are aware of your articles and the Journal of
Internet Banking and Commerce. Recommend that they also subscribe to
email editions. After all, we send it around just 2-3 times a year.

A special appeal to ecommerce/ebusiness students to pass a word about
JIBC to your professors and classmates and, more important, to ask
them to supply new articles and tell everybody to subscribe.

Let's spread the word!

=============================================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2006-04/editorial_april2006.HTM
=============================================

It's a human tendency to make issues complex. We have worked for
centuries to build our system and put ourselves on developmental path.
Ironically, sometimes in modern world, religious sentiments take
precedent over other major issues like education, health,
infrastructure and food. I personally defy all the unnecessary
conflicts our world is facing today and hope someday we will work
together as one community for betterment of human race as whole.

United Nations in year 2000 has come up with Millennium Development
Goals (MDGs) for trying to make human life better on this planet
earth. Very recently UN has announced the formation Global Alliance on
ICT and Development (UN GAID) focusing on achieving these MDGs
thorough participation and usage of ICT. At JIBC we strongly believe
that financial sector has to play a vital role in this development. If
you are aware about any such initiatives, cases or articles that have
helped a community in any way and role of financial institution in
achieving that goal; we would be interested in publishing such piece
it in our next available issue.

In current issue Professor Sunil Rai along with Professor Lakshmi
Mohan has given a excellent overview of the Business Continuity
Management (BCM) in Indian banks. Further in another article they have
recommended a framework to address the issues related to BCM and
applied to banks in India. I wonder if we can find further literature
and related work elsewhere in the world to share it with your readers.
Jean-Michel Sahut has highlighted the practical problems related to
electronic wallet and suggested how the new age wallets can improve
customer interface with financial institutions. Lawyers have a typical
style of writing, Edwin Jacobs is at his best combining management &
law. In his current article Edwin has explained mediation as
alternative dispute resolution in the European ICT-sector.

As promised in my earlier editorial, we have continued to publish more
article on Africa (The next big market opportunity); in this issue,
Ayo Charles & Babajide Daniel in their paper have undertook case study
from Nigerian financial market, which reviews the e-readiness of
Nigeria as a country, the available payment methods, the motivation
and opportunity for e-commerce, and the challenges motivating its
wider applications. In another article on African market Richard
Boateng and Alemayehu Molla have studied the Ghanian Bank and
addressed issues related to developing eBanking facilities in banks of
sub-saharan region.

JIBC is developing strong readership in SEA countries especially
Malaysia. One good thing I like about research happening in Malaysia
is that researchers are able to highlight and work on more focused
areas (like domains or geographic regions or interest groups) rather
giving out motherhood statements. I have visited Kuala Lumpur on
business recently and was pleasantly surprised to witness the
extraordinary transformation government is able to do in short time.
Development in Kuala Lumpur is true example of
Public-Private-People-Partnership (PPPP). In three of the articles
from Malaysia, our readers would smell what I am talking about. Goi
Chi Lee has highlighted the interesting classification of factors
influencing the development of eBanking in Malaysia. In Another
interesting study, T. Ramayah, Fauziah Md. Taib and Koay Pei Ling, has
done a segmentation of users - non-users of Internet banking in small
state of Penang, Malaysia. Jetol Bolongkikit, Joe Henry Obit, Joyce
Georgina Asing and Geoffrey H. Tanakinjal have done an exploratory
research of the usage level of eCommerce among SMEs another small
Malaysian territory.

Festival time is round the corner. I wish all my readers, authors and
team members happy festivity ahead.


Dr. Nikhil Agarwal
University of Cambridge
United Kingdom


==========================
OPINION ARTICLES (Non-Peer Reviewed)
==========================

BELGIUM: Meditation as Alternative Dispute Resolution in the European
ICT Sector
(By Edwin Jacobs)
http://www.arraydev.com/commerce/JIBC/2006-08/Edwin%20Jacobs%20Mediation%20ICT%2\
0021006.HTM

Mediation is an alternative dispute resolution that is popular in the
US. Today, it is less common in continental Europe but its use is
likely to increase because of the forthcoming European directive on
certain aspects of mediation in civil and commercial matters.
Mediation can be an important cost and time saving tool for solving
ICT disputes.

UNITED STATES/INDIA: Business Continuity Management in Banks "C" The
Indian Experience
(By Sunil Rai and Lakshmi Mohan)
http://www.arraydev.com/commerce/JIBC/2006-08/sunilrai2.HTM

Advances in the banking sector have ushered in an era of multi-product
and multi-services being delivered using multiple yet integrated
channels. The use of information and communication technology (ICT) is
on the increase and encompasses nearly the entire gamut of banking
operations. Rising competition and customer expectations have
compelled top management to implement, and continuously upgrade, agile
and scalable ICT practices and solutions. The enormity and range of
banking services combined with the complexity of integrated and
ICT-enabled delivery mechanisms require comprehensive partnerships to
be forged between banks and providers of ICT solutions, especially
with regard to Business Continuity Management (BCM). This paper
presents the preliminary findings of a research study to identify the
essential ingredients of successful BCM implementation based on
experiences of banks in India.

FRANCE: Electronic Wallets in Danger
(By Jean-Michel Sahut)
http://www.arraydev.com/commerce/JIBC/2006-08/Jean-Michel_SAHUT.asp

The erratic development of electronic wallets (EW) illustrates the
difficulties of their adoption by the general public and shopkeepers
alike. With exceptions, such as Proton in Europe and Octopus in Asia,
a lot of electronic wallets are likely to disappear in the next few
years. Yet the key factors of success are known by banks which often
choose to ignore them. However, the strategic change taken by some in
order to bring a fresh start to electronic wallets like Moneo could
reverse the tendency. Nevertheless, it will still be necessary to wait
several years before seeing electronic wallets really impose
themselves as a credible alternative to payments in cash.


================
PEER REVIEWED RESEARCH
================

NIGERIA: Designing A Reliable E-payment System: Nigeria a Case Study
(By Charles K. Ayo and Daniel O. Babajide
http://www.arraydev.com/commerce/JIBC/2006-08/AYO.asp

The Nigerian economy is largely cash-based with a lot of money
residing outside the banking system. To a greater extent, this has
hindered the participation of her citizens in e-commerce where
e-payment is the acceptable means of settling transactions. This paper
reviews the e-readiness of Nigeria as a country; the available payment
methods; the motivation and opportunity for e-commerce; and the
challenges motivating its wider applications. We propose: a legal
framework among the stakeholders and government to guide the
operations of the scheme; a public-private-partnership (PPP)
initiative to manage the entire system with a view to guaranteeing
security, confidence and effective control; and a robust e-payment
architecture.

UNITED KINGDOM/AUSTRALIA: Developing E-banking Capabilities in a
Ghanian Bank: Preliminary Lessons
(By Richard Boateng and Alemayehu Molla
http://www.arraydev.com/commerce/JIBC/2006-08/Boateng.asp

There is relatively little known about electronic banking (e-banking)
in developing countries, particularly in Sub-Saharan Africa. This
paper addresses this knowledge drawing from the lessons a Ghanaian
bank learned whilst developing its e-banking capabilities. The paper
explores some of the issues that affected the key decisions that the
bank made.

MALAYSIA: Factors Influence Development of E-Banking in Malaysia
(By Chai Lee Goi)
http://www.arraydev.com/commerce/JIBC/2006-08/JIBC.htm

There are several underlying forces coming together have caused the
E-banking development in Malaysia. The development mainly because of
new marketing strategy especially to create E-Customer Relationship
Management (E-CRM) and to improve banking activities. The other
reasons are development of technology, applications and tools, as well
as supported by the government.

MALAYSIA: Classifying Users and Non-users of Internet Banking in
Northern Malaysia
(By T. Ramyah, Fauziah Md. Tahib and Koay Pei Ling)
http://www.arraydev.com/commerce/JIBC/2006-08/Thurasamy.asp.htm

Internet banking has become the latest delivery channel for banking
services due to the backlash from globalization and liberalization of
financial services. Malaysian banks are desperately embracing this new
distribution channel to prepare themselves for the competition which
is looming in the near future. Using a structured questionnaire data
was collected through a convenience sampling from 180 banking
customers in the state of Penang, this study revealed that the banks
have achieved considerable success as far as awareness is concerned as
a vast majority of the respondents reported that they were aware of
Internet banking.

MALAYSIA: An Exploratory Research of the Usage Level of E-Commerce
Among SMEs in the West Coast of Malyasia
(By Jetol Bolongkikit)
http://www.arraydev.com/commerce/JIBC/2006-08/Bolongkikit.asp

Previous studies have indicated that e-commerce development offers a
promising way for business to meet the challenges of the ever-changing
environment. It provides effective and efficient ways, such as buyers
can gather information rapidly about the availability of the products
or services, evaluate, or negotiate with vendors. However, previous
studies on Small and Medium Enterprises (SMEs) in Malaysia have shown
that the application of e-commerce is still at its infancy. Thus, this
study investigates the usage level of e-commerce application for the
SMEs in West Coast of Sabah, Malaysia. This achieved by circulating a
set of questionnaire to examine the awareness and adoption of
e-commerce application by the SMEs, and recognize the impeding factors
to adopt e-commerce and the perception of e-commerce benefits towards
incorporating e-commerce in their business. The study found that the
awareness and adoption level among the SMEs are still in its infancy,
although the potential benefits were perceived to be important.

UNITED STATES/INDIA: Business Continuity Management: A Reality Checks
for Banks in India
(By Sunil Rai and Lakshmi Mohan)
http://www.arraydev.com/commerce/JIBC/2006-08/sunilrai1.HTM

The paper discusses the need for BCM in banks and presents a model to
design, implement, operationalize and assess a business continuity
plan. The proposed BCM model covers five components relating to the
Organizational Soft issues, Processes, People, Technology and
Facilities Management; and, defines a variety of metrics to measure
the "Resilience" and "Vulnerability" of a bank in the event of
business disruptions. The model has been applied to conduct a "reality
check" of BCM implementation in 8 large and 14 medium/small banks in
India. The value of the model lies in its ability to identify the gap
areas for bank management to take corrective action.


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=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs
banking and electronic commerce professionals and
executives on principal developments, benchmark
practices, and future trends in the Internet-based
marketing practices of governments and industry. This
free online interactive journal is a way to keep in
touch, to share information, and to establish business
contacts (networking) for worldwide professionals that
specialize in electronic commerce, governance and
banking solutions.

In JIBC you will find informed discussion of the
latest internet-based banking and electronic trends
and practices from around the world. Our priority is
quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an
effective forum for your articles, your letters, your
insights and ideas.

JIBC invites banking and electronic commerce
professionals, academicians and publishers to submit
important announcements, original articles, guest
columns and significant feature presentations. We also
welcome surveys, book reviews and letters to the
Editor. Technical discussions in highly specialized
areas of expertise will be kept to an absolute
minimum.

JIBC is formally issued three to four times a year
when an email summary of current articles is
distributed to subscribers. The full text of current
articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of
Internet Banking and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of
products, books, and services that they think others
will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is
provided as a service by ARRAY Development based in
Ottawa, Canada. Views expressed are those of the
authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in
sharing sponsorship of this project may contact array
(at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm
contains all articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with
any questions or comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum
Goldmann

Chief Editor: Nikhil Agarwal

Founding Chief Editor Emeritus and Member of the
Editorial Board: Gord Jenkins

Assistant Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
US Contributing Editor: Joshua Fogel
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of
this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 11, No. 1, April 2006
http://www.arraydev.com/commerce/jibc/current.asp

=================================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2006-04/0605-Publ.HTM
=================================

The geographic distribution of JIBC authors is truly
amazing. All continents are well covered. We are
especially happy to have quite a number of good
articles from the South-East Asia and Africa, in
addition to more traditional innovation centers of the
North America, Europe and Australia.

From time to time we also publish an occasional
article from China but frankly, our success rate in
attracting first-rate articles from China is quite
limited, especially compared to other SEA countries
like India or Malaysia. Why it is so is unclear,
especially taking into account the tremendous growth
that China experiences in the Internet trading area.
On a number of occasions we have approached China
academics and ecommerce executives with the requests
of submitting articles to our publication, but so far
not that many used this opportunity.

I am asking fellow JIBC editors, authors and readers
to pass the requests to their colleagues in China to
submit their original works to JIBC Chief Editor Prof.
Nikhil Agarwal, to myself, or to our numerous
contributing editors. As well, we are looking for
prominent scientists, as well as the leading
executives and practitioners, especially from China,
Japan, Korea, Germany, Switzerland, Netherlands,
Eastern Europe and Latin America to joint JIBC
distinguished Editorial Board.

Again, I am asking each and every one of you, our
readers and subscribers, to email JIBC to at least 3
of your colleagues, friends and discussion groups that
you are participating at, and recommend that they also
subscribe.

As well, I am challenging all the current and past
authors and editors to email your articles -- along
with the rest of JIBC edition -- to at least 10 of
your peers and colleagues in academia, government and
industry. Make sure they are aware of your articles
and the Journal of Internet Banking and Commerce.
Recommend that they also subscribe to email editions.
After all, we send it around just 2-3 times a year.

A special appeal to ecommerce/ebusiness students to
pass a word about JIBC to your professors and
classmates and, more important, to ask them to supply
new articles and tell everybody to subscribe.

Let's spread the word!


=============================================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2006-04/editorial_april2006.HTM
=============================================

Gurus comes in all sizes specially religious and
management gurus. You must be wondering why I say so.
My 6-month-old son Krishiv� is teaching me management
nowadays. I am trying to understand complexities of
management theories from acts of toddler. I would call
it evolution.

During the past few weeks, I am working closely with
Dr. Jovan Kurbalija of Diplo Foundation on Internet
Governance [IG] issues and attending a programme on
Internet Governance Capacity Building (IGCB). WSIS
Geneva [2003] and Tunis [2005] have given new
dimensions to the IG negotiations and extend a
multi-stakeholder approach towards the whole subject.
Many of our readers must have participated in the main
conferences and related deliberations elsewhere. In
our next issue, we would be happy to publish the
experiences of our readers and authors on this very
important matter. Please submit your papers by end
July, 2006.

Security and Privacy issues worldwide are generating
more attention then ever. With growing penetration of
technology in our daily lives, it is becoming apparent
that companies & consumers have to collaborate to win
this war. Every quarter JIBC receives 20% of our
submission on security related or privacy issues. In
the present issue, Ankur Gupta has highlighted the
need of data protection in consumer e-banking. Lior
Shamir of Michigan Tech has discussed a simple yet
hazardous method used by hackers for stealing user
information. Advocate Rahul Goel, in his article, has
analyzed the provisions related to privacy in proposed
amendments to the Indian Information Technology Act
2000. In an another article related to security P.
Yogesh has suggested alternate architecture for DNS to
foil DoS attacks.

In last issue we argued that the next big marketplace
would be Africa. Articles from Achraf Ayadi and Abel
Ezeoha has further consolidated our belief. Achraf has
investigated technological and organizational
preconditions to develop Internet Banking services in
Tunisian Banking sector. Abel in the second part of
his paper has given success prescription for
regulating Internet banking in Nigeria. His paper is
important read for those who wish to have eagle view
of African market.

Teuta Cata of Northern Kentucky University has
introduced the concept of Silent CRM (s-CRM), an
application of RFID technology to support customer
needs. Jose Gonzalez has investigated Market
orientation framework model and expanded it in context
of Web Hosting and Internet Service Provider
companies. Jordan Shropshire of Mississippi State
University has provided a good background paper for
evaluation of performance metrics of hosted software
databases.

We are pleased to invite our new member on the board
of JIBC, Dr. Joshua Fogel, A/ Professor at Brooklyn
College of the City University of New York. Following
the advise of Dr. Fogel and persistent efforts of
Nahum Goldmann, JIBC is now listed in Directory of
Open Access Journal [DOAJ]. Please click here to find
the listing. Another important announcement is
regarding partnership of JIBC in various
conferences/seminars. We would be pleased to
participate and publish the proceedings of conferences
related to our themes. Such requests can be made to
myself or Nahum Goldmann, publisher of JIBC.

Collectively let's spread knowledge across all
continents and beyond.

Dr. Nikhil Agarwal
SP Jain Institute of Management & Research (SPJIMR)
Mumbai, India


==========================
OPINION ARTICLES (Non-Peer Reviewed)
==========================

INDIA: Data Protection in Consumer E-banking
(By Ankur Gupta)
http://www.arraydev.com/commerce/JIBC/2006-04/gupta.HTM

Consumer Internet Banking, with its ability to reach
each and every nook and cranny of the world, holds
great importance for a nation like India, where
conventional banking services are out of reach for a
large proportion of the masses. But to make it a
success it requires more than just an adequate
internet enabling infrastructure. There is a dire need
for an adequate legal and regulatory framework to be
put into place. One of the crucial elements of such a
legal and regulatory framework will be data protection
provisions. The emphasis of this article is on the
this aspect of data protection in the electronic
banking sector. The article is an attempt to highlight
the importance of data protection in internet banking
and dwell upon possible legal recourses which may
adopted keeping in mind the current legal framework in
India with regards regulation of information
technology.


UNITED STATES: A Security Concern in MS-Windows:
Stealing User Information from Internet Browsers Using
Fake Windows
(By Lior Shamir)
http://www.arraydev.com/commerce/JIBC/2006-04/Lior.HTM

A simple method that might be used by malicious
attackers for stealing usernames, passwords, credit
card numbers or other valuable small pieces of
information is described. Hidden processes running on
Windows-based machines might create faked controls and
place them on the browser exactly on top of the real
controls of web pages such as on-line banking account
login pages. Users might then type in their passwords
or credit card numbers into the faked controls,
allowing the malicious process to capture the data.
Since spyware is a large and growing threat to
internet users, it is not unlikely that such a
technique will be used for stealing valuable
information. An example based on Hotmail web-based
email service is demonstrated, but this technique
might be used for a variety of password-protected web
services. This paper also discusses different approach
of protection against the described attack.


INDIA: The Indian Information Technology Act and
Spamming
(By Rahul Goel)
http://www.arraydev.com/commerce/JIBC/2006-04/Rahul_F.asp

An attempt to analyse provisions relating to privacy
especially spamming and phishing in the proposed
amendments to the Indian Information Technology Act,
2000.


UNITED KINGDOM: Security Revisionism
(By Ian Grigg)
http://www.arraydev.com/commerce/JIBC/2006-04/Grigg.asp

Security isn't working, and some of us are turning to
economics to address why this is so. Agency theory
casts light on cases such as Choicepoint and Lopez .
An economics approach also sheds light on what
security really is, and social scientists may be able
to help us build it. Institutional economics suggests
that the very lack of information may lead to results
that only appear to speak of security.


================
PEER REVIEWED RESEARCH
================

FRANCE: Technological and Organizational Preconditions
to Internet Banking Implementation: The Case of a
Tunisian Bank
(By Achraf Ayadi)
http://www.arraydev.com/commerce/JIBC/2006-04/Ayadi.asp

An exploration of the importance of some prerequisite
factors in developing internet banking (IB) services.
According to the emergent case of Web services in the
Tunisian banking sector, two types of preconditions
are investigated: technological preconditions and
organizational preconditions. Based on a case study, a
set of qualitative and quantitative research methods
were carried out beside the bank direction, the
commercial staff and subscribed customers to IB
services. The research illustrates that centralised
architectures, fragmented information systems (IS),
organizational rigidity and disregarding user's
implication could be factors of slowness (or failure)
in implementing IB.


NIGERIA: Regulating Internet Banking in Nigeria: Some
Success Prescriptions (Part II)
(By Abel Ebeh Ezeoha)
http://www.arraydev.com/commerce/JIBC/2006-04/Nigeria-2_F.asp

This paper is the second part of an earlier one on the
problems and challenges of Internet banking regulation
in Nigeria. The paper argues that for Internet banking
to assume a developmental dimension in Nigeria and for
the country to be fully integrated in the global
financial environment, the prevalent level of frauds
in Nigeria (and among Nigerians) must first be
addressed. It suggests that the ways to do this are
first to: get the relevant local laws in place and in
consonance with international laws and conventions;
get the citizens well educated on the intricacies of
Internet usage and frauds, as well as the regulatory
implications of wrong/fraudulent uses of the Internet;
ensure that all the major background problems such as
poverty, corruption and bad governance are addressed
and; ensure adequate interface and collaborations
between Nigerian local law enforcement agents and the
various international agencies that are presenting
pursuing the course for safe Internet community.


INDIA: Effective Method of Security Measures in
Virtual Banking
(By S. Arumuga Perumal)
http://www.arraydev.com/commerce/JIBC/2006-04/VB.asp

The development of Information Technology leads to the
remarkable growth in the field of network security
that is used in security applications, which shows the
way to the development of virtual banking. The aim of
this paper is to discuss the different security
measures that are to be considered in Virtual banking
system, to share the fundamental concept behind the
security technology and to understand the relative
advantages and limitations of different approaches.
When passwords are used for authentication, the
decision made is relatively straight forward, but in
network security using biometric authentication the
decision is made on a probability. Biometrics is not
secret. Any organization considering the use of
biometrics needs to understand the impact of this when
reaching a trust decision.


INDIA: Alternate Architecture for the Domain Name
System to Foil Distributed Denial of Service Attack
(By P. Yogesh and A. Kannan)
http://www.arraydev.com/commerce/JIBC/2006-04/Alt%20Architecture%20for%20DNS.htm\
l

The Domain Name System is an important part of the
Internet infrastructure and maps symbolic domain names
to IP addresses. The DNS is a hierarchically arranged
distributed database. At the top of the hierarchy is
the root. The root is a single point of failure in the
DNS architecture. It has been subject to variety of
Denial of Service (DoS) attacks. Eliminating the root
from this architecture eliminates the single point of
failure. This involves storing the addresses of the
top-level domain servers at the name servers, so that
they can be reached without going through the root. In
this paper we propose two architectures, both capable
of foiling the DoS attack. The architectures differ in
the capabilities of the clients and servers, and
provide different cost-benefit tradeoffs. It has been
found that a scheme that avoids a root server for name
resolution and includes caching capabilities at the
client itself, reduces bandwidth requirements, and
improve! s response times, resilience to DoS attacks.


UNITED STATES: Challenges and Opportunities of Silent
Commerce: Applying Radio Frequency Identification
Technology
(By Teuta Cata)
http://www.arraydev.com/commerce/JIBC/2006-04/cata.asp

An investigation of the applications of Radio
Frequency Technology (RFID) as an application of
ubiquitous commerce. RFID has a wide application in
the supply chain but still is very limited for
customer support. This study introduces the concept of
the Silent CRM (s-CRM) which is an application of RFID
to proactively support customer needs. Challenges of
RFID application within companies, outside of
companies and about the technology itself are
discussed as well.


UNITED STATES: Internet Support Companies: The Impact
of Marketing Orientation
(By Jose Gonzalez and Larry Chiagouris)
http://www.arraydev.com/commerce/JIBC/2006-04/Gonzalez.asp

Several studies have expanded the work by Jaworski and
Kohli (1993) by using their market orientation
framework model and applying it to a variety of
industries. The results of recent studies have
uncovered strong relationships between the concepts of
market orientation and organizational performance. The
large body of research on the topic of market
orientation has not been applied to companies critical
to commercial transactions over the Internet. This
study explored implementation of market orientation in
the context of web hosting and Internet service
providers to understand impact of market orientation
on these kinds of companies. The study results
indicate that market orientation is positively related
to performance. Implications for theory construction
and managerial practice relevant to companies engaged
in ecommerce are discussed.


UNITED STATES: A Taxonomy of Metrics for Hosted
Databases
(By Jordan Shropshire)
http://www.arraydev.com/commerce/JIBC/2006-04/Shropshire.ASP

The past three years has seen exponential growth in
the number of organizations who have elected to
entrust core information technology functions to
application service providers. Of particular interest
is the outsourcing of critical systems such as
corporate databases. Major banks and financial service
firms are contracting with third party organizations,
sometimes overseas, for their database needs. These
sophisticated contracts require careful supervision by
both parties. Due to the complexities of web- based
applications and the complicated nature of databases,
an entire class of software suites has been developed
to measure the quality of service the database is
providing. This article investigates the performance
metrics which have evolved to satisfy this need and
describes a taxonomy of performance metrics for hosted
databases.

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=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs
banking and electronic commerce professionals and
executives on principal developments, benchmark
practices, and future trends in the Internet-based
marketing practices of governments and industry. This
free online interactive journal is a way to keep in
touch, to share information, and to establish business
contacts (networking) for worldwide professionals that
specialize in electronic commerce, governance and
banking solutions.

In JIBC you will find informed discussion of the
latest internet-based banking and electronic trends
and practices from around the world. Our priority is
quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an
effective forum for your articles, your letters, your
insights and ideas.

JIBC invites banking and electronic commerce
professionals, academicians and publishers to submit
important announcements, original articles, guest
columns and significant feature presentations. We also
welcome surveys, book reviews and letters to the
Editor. Technical discussions in highly specialized
areas of expertise will be kept to an absolute
minimum.

JIBC is formally issued three to four times a year
when an email summary of current articles is
distributed to subscribers. The full text of current
articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of
Internet Banking and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of
products, books, and services that they think others
will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is
provided as a service by ARRAY Development based in
Ottawa, Canada. Views expressed are those of the
authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in
sharing sponsorship of this project may contact array
(at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm
contains all articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with
any questions or comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum
Goldmann

Chief Editor: Nikhil Agarwal

Founding Chief Editor Emeritus and Member of the
Editorial Board: Gord Jenkins

Assistant Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
US Contributing Editor: Joshua Fogel
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of
this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is
available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 10, No. 3, December 2005
http://www.arraydev.com/commerce/jibc/current.asp

========================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2006-02/0602-Publ.HTM
========================

JIBC started to be published in January 1996. To the best of my
knowledge, ours is the only academic/professional journal that has
been published on Internet for 10 uninterrupted years! Since 1996, the
Internet has seen the start of numerous interesting publications with
issue #1. Out of many thousands, ours is the only one with Vol. 10 in
the byline.

I would like to thank these authors and subscribers who have been with
us for all these 10 years. It was a bumpy ride both for our journal
and the e-Commerce business subject. Both matured considerably since
then, but there is still a long way to go.

Those of you who know Gord Jenkins, JIBC legendary Founding Chief
Editor-Emeritus and Member of Editorial Board (or just know people who
know Gord, or even heard of Gord but never talked to him) -- never
mind, do not hesitate to email Gord and pass your regards. I know that
Gord would much appreciate your personal messages and any nostalgic
feedback. Gord's seasoned but still young face and his email address
grace the recently refreshed JIBC Editorial Board page
http://www.arraydev.com/commerce/jibc/editors.asp.

As well, with JIBC Chief Editor Prof. Nikhil Agarwal, I would like to
greet several recently joined us contributing editors and wish them
(and us) productive editorial contribution and many happy returns for
the JIBC distinguished Editorial Board!

This year the main challenge for JIBC is a smooth transition from a
leading research/professional journal on the subject of eCommerce and
eBanking, to become the world's leader among the peer-reviewed
academic publications. For Prof. Agarwal and JIBC Editorial Board
member Dr. Jean-Michel Sahut, who agreed to spearhead this transition,
it is undoubtedly a challenge.

I have recently visited The Groupe Sup de Co La Rochelle Grande Ecole,
and have had a privilege to present students with the lectures on
profitability models for transactional ecommerce. Jean-Michel Sahut,
as the dean for research of the Sup de Co La Rochelle Group, has his
own number of challenges. Still, I am confident that both Nikhil
Agarwal and Jean-Michel Sahut, together with all other members of the
Editorial Board, will be successful in this difficult transition to
the peer-reviewed JIBC.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe.

As well, I am challenging all the current and past authors and editors
to email your articles -- along with the rest of JIBC edition -- to at
least 10 of your peers and colleagues in academia, government and
industry. Make sure they are aware of your articles and the Journal of
Internet Banking and Commerce. Recommend that they also subscribe to
email editions. After all, we send it around just 2-3 times a year.

A special appeal to ecommerce/ebusiness students to pass a word about
JIBC to your professors and classmates and, more important, to ask
them to supply new articles and tell everybody to subscribe.

Let's spread the word!


=============================================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2006-02/Editorial.HTM
=============================================

We are witnessing the dawn of another year of 21st century. 2005 was
instrumental in fuelling up the economic growth across the globe.
Economist and business historians are searching databases to find any
such instance in the history of world economy when bullion, markets
and real estate all three together are going up. A few years back,
nobody had ever dreamt of a new economic world order, polar shift of
markets and redefining of business mantras.

I would like to take this opportunity to welcome three new members on
our editorial board Professor A. M Sherry, India; Professor Bala
Shanmugam, Malaysia and Dr. Arthur J. Cordell, Canada. All the three
members are distinguish scholars in their respective fields. We would
be indeed benefited from their vast experience.

At JIBC we are entering into our 10th anniversary. We are able to
sustain and consolidate our position in business publication over
Internet. I would like to congratulate Nahum Goldmann, Publisher, Gord
Jenkins, founder editor and all readers, authors, contributors for
helping JIBC in maintaining its position. I wish to invite you all to
celebrate the 10 intellectually simulating years of publication.

In this issue, Jonathan Band has given insights on Google Print
Library Project. He has described the difference between Print
Publisher Program and Print Library Project. Our old friend Dave Birch
is as crisp as always, in his article Out of Africa he pointed out the
change in lifestyle because of increasing mobile connectivity in
Africa. Carin Holroyd introduces keitai and thrown the light on the
revolution DoCoMo has bought in Japanese telecom markets. Arumugu in
his article argues the benefits of integrating eCommerce and CRM with
data mining.

Joshua of City University has interesting article to share with
readers of JIBC. He researched on Internet Dating sites and their
profitability. He has tried to find relationship between
African-Americans and White college students. Quite an interesting
read. Hanudin has done a preliminary study on students' perception on
SMS banking in an Malaysian university campus. Despina has introduced
Karayanni scheme on Internet Marketing Strategies in B2B segment.
Carlo & his friends from Brazil have got experiences of Brazilian
banks in service quality. They surveyed 11,936 customers [whossh!!] of
a Brazilian bank, don't miss this article. Javed has given a framework
to implement secure internet/mobile banking system in Iran. Lee in his
article lists out the opportunity and challenges for e-banking in
Malaysia. Finally, Abel has described, in first part of article, the
problem & challenges of regulating Internet Banking in Nigeria.

After reading Dave Birch and Abel articles, I can foresee the next
big-marketplace after India and China. Any guess! of course it's
Africa. We would invite more articles from Africa to give our readers
in-depth analysis of business situation and opportunities.

Till then, keep networked.

Prof. Nikhil Agarwal
SP Jain Institute of Management & Research (SPJIMR)
Mumbai, India


==========================
GENERAL AND REVIEW ARTICLES
==========================

UNITED STATES: The Google Print Literary Project: A Copyright Analysis
(By Jonathan Band)
http://www.arraydev.com/commerce/JIBC/2006-02/Band.htm

On August 11, 2005, Google announced that it would not scan
copyrighted books under its Print Library Project until November, so
that publishers could decide whether they want to opt their
in-copyright books out of the project. Given the confusion in press
reports describing the project, publishers should carefully study
exactly what Google intends to do and understand the relevant
copyright issues


UNITED KINGDOM: Out of Africa
(By Dave Birch and Paul Makin)
http://www.arraydev.com/commerce/JIBC/2006-02/Birch.htm

The two billionth mobile phone has been switched on. There are 350
million mobile phone users in China, and by 2009 it will be 600
million. India has 55 million and is on the same growth trajectory. In
a generation, mobile phones have gone from being yuppie playthings to
consumer mass-market toys, yet the mobile phone revolution is far from
over. We may have become rather blase about it, with our mobile phone
penetration rates over 100%, but then we all had telephones before we
had our first Nokia. In many parts of the world, however, mobile
phones aren't a convenient alternative to landlines but the only means
of communication: they provide connectivity where there was none before.


CANADA: DoCoMo As A Global Force: The Challenge Of Exporting Japanese
Technological Developments
(By Carin Holroyd)
http://www.arraydev.com/commerce/JIBC/2006-02/Holroyd.htm

NTT DoCoMo sparked a veritable revolution in the Japanese mobile
Internet, vaulting the country to global leadership in this crucial
high technology field.  Having established a dominant position in the
Japanese market, DoCoMo sought to export its technology and business
model, hoping to capitalize on growing international interest in
telephone-based Internet service. The expansion did not prove as
smooth or easy as DoCoMo anticipated, as the company attempted to
fight through the complex web of national telecommunications
regulations and complex merger and joint venture agreements with a
number of international firms.   DoCoMo's experience demonstrated the
formidable challenges involved in internationalizing Japanese
technology and Internet-based services, drawing attention to the
strong connection between DoCoMo's dramatic success in Japan and the
unique needs and opportunities of the Japanese market.


INDIA: Integrating E-Commerce and CRM With Data Mining: A New Era
(By S. Arumuga Perumal)
http://www.arraydev.com/commerce/JIBC/2006-02/crm.htm

Due to the fast development of information technology there is a
remarkable raise in the growth of the new-fangled area data mining,
which leads to revolutionize the business and Customer relationship
management. The aim of this paper is to make an association with
e-commerce, CRM and Data mining. E-commerce is successful only if CRM
is efficient. With out CRM there is no chance of improvement in the
e-commerce. In this paper some suggestions are made to get effective
CRM with data mining, which will help, for the improvement of
e-commerce. Data mining involves the use of data analysis tools, which
include statistical model to discover previously unknown valid
patterns, and relationships in large sets. Also discuss the new method
of e-business strategy for the successful business.


================
RESEARCH PAPERS
================

UNITED STATES: E-Commerce and Internet Dating Websites: Differences in
Match Options Between African-Americans and Whites
(By Joshua Fogel and Nancy Sardella)
http://www.arraydev.com/commerce/JIBC/2006-02/Fogel.asp

Internet technology has offered many options for online dating. We
studied online dating website capabilities and the relationship
between African-Americans and White college students regarding their
preferences for receiving a weekly list of potential matches via
e-mail, receiving free assistance in enhancing the written portion of
their profile, the ability to sort matches by ethnicity or religion,
and the ability to sort matches based on similar interests.

Traditional dating approaches typically involve a man initiating
contact with a woman. African-American men may have unique
psychological concerns with regard to online dating. They may prefer
to wait for automated information about prospective matches rather
than initially searching online for prospective matches. An
understanding of the gender differences among African-Americans can
help understand if it is necessary to advocate a change in this
behavioural pattern among African-American men.


MALAYSIA: A Preliminary Study on Students' Perception of SMS Banking:
A Case at the Labuan International Campus - University Malaysia Sabah
(By Hanudun Amin, Suddin Lada, Mohd Rizal Abduland Geoffrey H. Tanakinjal)
http://www.arraydev.com/commerce/JIBC/2006-02/SMSBanking.htm

Mobile phones are crucial for those who are busy with daily routine
activities, especially those who are employed as well as students. The
objective of this study is to identify the key points that are
relevant to the students' perceptions of SMS banking by the use of a
survey conducted during July C September 2005. This research used
university students as the sample, namely from Labuan International
Campus-University Malaysia Sabah.


GREECE: The Use of the Internet in Business-to-Business Marketing:
Demographic Characteristics and Intercorrelations Among Internet
Marketing Variables from American and European Companies
(By Despina A. Karayanni and George J. Avionitis)
http://www.arraydev.com/commerce/JIBC/2006-02/greece.htm

In this paper we present some preliminary results from a major
Internet survey that examined the use of the Internet in a firm's
marketing strategies. Specifically, we describe the profile of
business-to-business respondents together with the descriptive
statistics of Internet use intensity, strategic goals, product,
promotion and sales strategies through the Internet. The
inter-correlations among the resulted factor scores of strategic goals
and Internet marketing strategies with product complexity and Internet
use depict some useful conclusions for Internet marketers and researchers.


BRAZIL: Service Quality in Banks: Insights from the Brazilian Experience
(By Carlo Gabriel Porto Bellini, Guilherme Lerch Lunardi and Jorge
Luiz Henrique)
http://www.arraydev.com/commerce/JIBC/2006-02/Bellini.asp

Quality in servicing customers is important for the industry.
Nonetheless, problems in defining such constructs as service quality
and customer satisfaction, along with difficulties in putting into
operation current instruments to measure them, constitute constraints
for practice and research. This paper presents a framework aimed at
addressing the quality of banking services, framework which is based
on customer perceptions surveyed by a consultant firm with 11,936
customers of a Brazilian bank.


IRAN: Implementation of a Secure Internet/Mobile Banking System in Iran
(By Javad Soroor)
http://www.arraydev.com/commerce/JIBC/2006-02/Soroor.asp

Modern fast-evolving technology is constantly bringing new dimensions
to our daily life. In Iran, electronic banking systems provide
customers with easy access to banking services. ATMs, phone banking,
Internet banking, and more recently, mobile banking have considerably
improved the interaction between user and bank. This paper discusses
the security of today's electronic banking systems in Iran. We focus
on Internet and mobile banking and present an overview and evaluation
of the techniques that are used in current Iranian systems. The best
practice is indicated, together with improvements for the future.


MALAYSIA: E-Banking in Malaysia: Opportunity and Challenges
(By Chai Lee Goi)
http://www.arraydev.com/commerce/JIBC/2006-02/GOI.htm

E-banking has to be a delivery channel that replicates and replaces
many of the physical functions a bank currently performs. Hence, the
E-banking now becomes a virtual banking counter that the individual
and corporate customer to carry out the regular activities. Even
E-banking services more to electronic-based, but, it still strongly
support banking activities, therefore communication, transaction and
distribution. There are number of challenges need to be faced by
Malaysian banks, however, the opportunity in this industry is high due
to the current trend especially application and development of ICT.


NIGERIA: Regulating Internet Banking in Nigeria: Problems and
Challenges (Part I)
(By Abel Ebeh Ezeoha
http://www.arraydev.com/commerce/JIBC/2006-02/abel.asp

The emerging trend in Internet banking in Nigeria is of global
concern. For one thing, the Nigerian economy is a strong force in
Africa. The country also has a high reputation for Internet-related
frauds in the world, having been regarded as the headquarters of
Advance Fee Fraud (419). The code "419" is named after Section 419 of
the Nigerian Criminal Code that deals with "obtaining property by
false pretences; Cheating." On the home front, bank frauds, forgeries,
money laundry, insider abuse and erosion of public confidence
constitute a set of disturbing issues in the present-day Nigerian
banking system. This explains why regulation has become of paramount
importance in the entire Internet banking development process.


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=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.

Editorial Board

Publisher and Member of the Editorial Board: Nahum Goldmann

Chief Editor: Nikhil Agarwal

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord
Jenkins

Assistant Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
U.K. Contributing Editor: David G.W.Birch
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Legal Contributing Editor: Edwin Jacobs
Middle East Contributing Editor: Raed Awamleh
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


Please send any questions related to maintenance of this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol 10 No. 2 Summer 2005
http://www.ARRAYdev.com/commerce/JIBC/current.asp

========================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2005-08/0508-Publ.HTM
========================


  JIBC is clearly growing in the stature and readership, which is quite
encouraging. Our new Chief Editor Prof. Nikhil Agarwal and the renewed
Editorial Board have come up with a number of great ideas on
repositioning the Journal as a true leader in global ecommerce,
increasing its academic level and visibility and attracting new
readers. Again, I appeal to our readers and contributors to actively
support Prof. Agarwal and advise him on how to achieve JIBC
challenging objectives.

Again I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe.

As well, I am challenging all the current and past authors and editors
to email your articles -- along with the rest of JIBC edition -- to at
least 10 of your peers and colleagues in academia, government and
industry. Make sure they are aware of your articles and the Journal of
Internet Banking and Commerce! Recommend that they also subscribe to
email editions. After all, we only send it around 3 times a year.

A special appeal to e-Commerce/e-Business students to pass a word
about JIBC to your professors and classmates and, more important, to
ask them to supply new articles and tell everybody to subscribe.

Let's spread the word!

=============================================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/JIBC/2005-08/Editorial.asp
=============================================


First thing first! JIBC is going places. In last few months our
subscription has increased by 57%, this is an interesting growth.
Interesting from two perspectives, one better penetration among
academic/industry community and second quality of the publication. As
an academician, my personal focus is on quality (penetration becomes
the by-product).

Recently, flurry of floods have swept Mumbai, which is considered to
be financial capital and hub of outsourcing in India. Mumbai
contributes 40% of India's corporate tax revenues. The deluge
destroyed properties worth billions and resulted in the loss of
several man-hours of productivity. Thousands of people died and the
resulted cost of devastation & rehabilitation is estimated to be more
than USD 50 bn.

Last December, entire South Asia including India was devastated by
Tsunami and this year it was floods. Central Government has cut all
additional spending to facilitate relief work. Therefore, we have
decided to reschedule ECEP2006 to the winter of 2006-2007. There is
silver lining in the sky. Despite of all losses, Indian economy
continues to grow with 7% annually and Bombay Stock Exchange (BsE)
sensex touching record 8000 mark, jump of almost 100% compared to last
year. At JIBC, we are committed to back our business associates,
sponsors, government and affected people to get their life back on
track.

We have auspicious plans for JIBC. From year 2006 onwards, JIBC would
be a completely peer reviewed Journal. Our editorial board is sharing
similar opinion. Dr. Alemayehu Molla suggested creation of referral
board consisting of academicians/executives across the related
discipline. Dr. Dale Pinto suggested of starting international
relationships with universities and companies to share their research
and works. These are indeed optimistic ideas. We will work towards
them together in a close-knit team.

We are a dedicated and intelligent team comprising of some of the best
brains in the world. Now it's a time to expand and find out members
who are worthy of joining our exclusive family. I want you to refer
colleagues from different regions that would like to share our
philosophy of being innovative, different and ahead of time. We wish
to invite them on our Editorial board.

In the current issue, we have received array of articles from all
corner of the world. Edwin Jacobs has given insights of EEMA and its
work on legal issues of e-Business in EU. In another article, Edwin
highlighted the legal angle of Sarbanes Oxley Act in the European
Union and its obligation on corporate.

Dr. Larry Harris in his article has explained the importance of
integrating precision search into an existing eCommerce
infrastructure. An interesting point is covered by Chai Lee Goi about
the marketing mix, segregating it from the traditional thinking.
Alamushi, Boon Yan Heap, NVM Rao and Norizan M Kassim have given
holistic analysis of different banking systems & eCommerce activities
in China, Malaysia, India and Qatar. Francis de Clippele has
brilliantly explained the law on electronic medical transcription in
EU.

I invite all academicians, researchers, and executives to participate
in our 'flight' towards academic & business excellence. I want to
thank our all authors, JIBC team and our readers for their dedicated
effort to make JIBC truly world class.

Your comments and views are solicited. You can directly write to me at
nikhil.jibc(at)gmail.com. Kindly, circulate this issue within your
network.

Prof. Nikhil Agarwal
SP Jain Institute of Management & Research (SPJIMR)
Mumbai, India

==========================
GENERAL AND REVIEW ARTICLES
==========================


BELGIUM: EEMA: Focus on Technical and Legal Issues of e-Business in
the European Union
(By Edwin Jacobs)
http://www.aaraydev.com/commerce/JIBC/EdwinJacobs_EEMA_210705,asp

EEMA is Europe's leading independent association for e-Business and
promotes collaboration concerning all technical (ICT), legal and
business aspects of e-business. EEMA puts the emphasis on today's
practical issues. In this respect, EEMA's Legal Interest Group, headed
by Prof. Jos Dumortier, focuses on all legal aspects of e-business,
i.e. electronic signature, e-invoice, identity management, security
legislation (e.g. Sarbanes Oxley in the EU), privacy, etc. On November
22nd and 23 rd this year EEMA will organise a two-day seminar about
electronic invoicing and electronic archiving in Brussels.


CHINA: Current Development Situation of e-Commerce in China
(By Alamusi)
http://www.arraydev.com/commerce/JIBC/2005-08/china.htm

The Chinese government puts a great deal of emphasis on E-Commerce
work extremely. Generally speaking, the China E-Commerce market
contains huge commercial opportunity, the development prospect of
which is extremely broad. The relevant organizations are complying
with and guiding commercial transformation tendency, absorbing latest
international achievement of technical platform, payment system,
creditability system, platform construction and safety guarantee
system in E-Commerce, further optimizing the external environment, and
speeding up development and innovating application complying with
national features.


USA: B2B Marketers Integrate Precision Search to Boost Profitability
and Increase Satisfaction Across the e-Commerce Value Chain
(By Larry R. Harris)
http://arraydev.com/commerce/JIBC/2005-08/Harris.asp

This article will describe the central role that site search and
navigation plays in B2B eCommerce, as well as the defining
characteristics of a successful search implementation from both a
technical and marketing perspective. This article will also outline
how integrating precision search into an existing eCommerce
infrastructure can result in higher productivity, streamlined
processes, increased conversion rates, greater commercial buyer and
partner satisfaction, and higher profits per transaction.


================
RESEARCH PAPERS
================


BELGIUM: Security as a Legal Obligation: About EU Legislation Related
to Security and Sarbanes Oxley in the European Union
(By Edwin Jacobs)
http://www.arraydev.com/commerce/JIBC/2005-08/security.htm

Since the Sarbanes-Oxley Act there is a worldwide focus on security
issues in general. This new focus seems to emphasize that security is
a new kind of legal obligation. However, security is already a legal
obligation for all EU companies since the early nineties. On top of
that, in electronic banking there is a whole range of legal
obligations in some way related to security, that were already (and
remain) applicable, notwithstanding a possible application of the
Sarbanes-Oxley Act on some EU companies. The criterion of what can be
'reasonably expected' as 'bonus pater familias' from service
providers, but equally also from their customers, becomes increasingly
important.


BELGIUM: The Law on Electronic Medical Prescription
(By Francois de Clippele)
http://www.arraydev.com/commerce/JIBC/2005-08/EMV.HTM

Health care is one of the most important economic and business areas.
The European Union has therefore worked out an e-health care strategy
to achieving stronger growth and increased effectiveness of services.
The application of information and communications technologies (ICT)
that affect the health care sector is developing fast in Europe. In
this respect various countries have launched pilot projects in order
to modernize their medical prescription practices. A model of the
electronic medical prescription must respect patient's rights and can
only be deployed in a system of security in order to protect the
confidentiality.


CANADA: Trust and Confidence and the Digital Economy: Issues and
Challenges
(By Prabir K. Neogi and Arthur J. Cordell)
http://www.arraydev.com/commerce/JIBC/2005-08/Negi.htm

Globalization and technological change continue to profoundly affect
economic growth and wealth creation. Information and Communications
Technologies (ICTs) have been a key enabler and driver of
globalization, which is likely to continue as trade and investment
barriers continue to fall and communications become ever cheaper,
easier and more functional. Every economy requires a physical,
institutional and legal infrastructure, as well as understandable and
enforceable marketplace rules, in order to function smoothly. In this
paper the authors maintain that such an infrastructure must be
developed for the new digital economy and society, one that provides
trust and confidence for all those who operate in or are affected by
it.


INDIA: Technical and Entrepreneurial Research Information System: An
Applied e-Model for Sustainable Entrepreneurship Development
(By Dhrupad Mathur)
http://www.arraydev.com/commerce/JIBC/2005-08/DhrupadMathur.asp

This article stresses on the need for an e-application like Technical
and Entrepreneurial Research Information System (TERIS), which enables
interaction among academia, industry and various agencies related to
researchers for sustainable entrepreneurship development. The
functional details of the model are also discussed. This article is
based on inputs with reference to the state of Rajasthan. However, the
model can very well be replicated elsewhere.


INDIA: A Framework for Evaluating e-Business Models and Productivity
Analysis for Banking Sector in India
(BY N.V.M. Rao, Prakash Singh ans Neeru Maheshwari)
http://www.arraydev.com/commerce/JIBC/2005-08/maheshwari.htm

This study is an effort to draw together some of the e-Business models
and real-life experiments that has been circling around the e-business
models. To study the sweeping changes brought about by e-initiative
measures in the banking sector some banks were chosen, from public
sector like SBI, BOB etc and from private sector like ICICI, HDFC etc.


MALAYSIA: Do Foreign Banks Lead in Internet Banking Services
(By Boon Han Yeap and Kooi Guan Cheah)
http://www.arraydev.com/commerce/JIBC/2005-08/JIBC
_yeap%20&%20cheah.asp

Internet banking has been increasingly used as a delivery channel in
retail consumer banking. As far as the provision of internet banking
services in developing countries is concerned, foreign banks
definitely enjoy distinct advantages over domestic banks due to their
experiences in other, more advanced financial markets. This paper
reports a study that examined the levels of retail internet banking
services provided by foreign and domestic commercial banks in Malaysia
over a period of two years. The study found that while foreign banks
are marginally more sophisticated at information provision level,
domestic banks offer a significantly higher level of transactional
facilities in both years.


MALYASIA: Marketing Mix: A Review of "P"
(By Chai Lee Goi)
http://www.arraydev.com/commerce/JIBC/2005-08/goi.HTM

There has been a lot of debate in identifying the list of marketing
mix elements. The traditional marketing mix by McCarthy (1964) has
regrouped Borden's (1965) 12 elements and has comprised to four
elements of product, price, promotion and place. A number of
researchers have additionally suggested adding people, process and
physical evidence decisions (Booms and Bitner, 1981; Fifield and
Gilligan, 1996). The other suggested Ps are personnel, physical assets
and procedures (Lovelock, 1996; Goldsmith, 1999); personalization
(Goldsmith, 1999); publications (Melewar and Saunders, 2000);
partnerships (Reppel, 2003); premium price, preference of company or
product, portion of overall customer budget and permanence of overall
relationship longevity (Arussy, 2005); and 2P+2C+3S formula (Otlacan,
2005), therefore personalisation, privacy, customer Service,
community, site, security and sales promotion.


QATAR: E-Banking Service Quality: Gaps in the Qatari Banking Industry
(By Norizan M. Kassim)
http://www.arraydev.com/commerce/JIBC/2005-08/KassimTry.asp

Financial liberalization and technology revolution have allowed the
developments of new and more efficient delivery and processing
channels as well as more innovative products and services in banking
industry. Banking institutions are facing competition not only from
each other but also from non-bank financial intermediaries as well as
from alternative sources of financing, such as the capital markets.
Another strategic challenge facing banking institutions today is the
growing and changing needs and expectations of consumers in tandem
with increased education levels and growing wealth. Consumers are
becoming increasingly discerning and have become more involved in
their financial decisions. For this reason, they are demanding a
broader range of products and services at more competitive prices
through more efficient and convenient channels. This study
investigates the discrepancy between customer's expectation and
perception towards the e-banking services.


USA/SINGAPORE: A Case Study of electronic Bill Presentment and Payment
(EBPP) Integration Using the CON Mediation Technology
(By Sajindra Jayasena and Stephane Bressan)
http://arraydev.com/commerce/JIBC/2005-08/Jayasema.asp

By its very nature, financial information, like the money that it
represents, changes hands. Therefore the interoperation of financial
information systems is the cornerstone of the financial services they
support. In this paper we illustrate the nature of the problem in the
Electronic Bill Presentment and Payment industry. In particular, we
describe and analyze the difficulty of the integration of services
using four different formats: IFX, OFX and SWIFT standards, and an
example proprietary format. We then propose an improved way to
accomplish this integration using the Context Interchange (COIN)
framework.


===============
Administrative Notice
===============


Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking
solutions.

In JIBC you will find informed discussion of the latest internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.

Editorial Board

Publisher and Member of the Editorial Board: Nahum Goldmann

Chief Editor: Nikhil Agarwal

Founding Chief Editor Emeritus
   and Member of the Editorial Board: Gord Jenkins

Assistant Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
U.K. Contributing Editor: David G.W.Birch
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Nordic Countries Contributing Editor: Minna Mattila
Legal Contributing Editor: Edwin Jacobs
Middle East Contributing Editor: Raed Awamleh
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut


Please send any questions related to maintenance of this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Did you get the latest edition of the JIBC Newsletter?

Our latest edition was sent out on Monday, but if did not yet receive
your copy, take another look in your mailbox.If you have a filter
program running, make sure our newsletter hasn't been put in the wrong
place.

We hope you enjoy our latest issue of the JIBC Newsletter, and that
you continue to look out for more in the future.

Journal of Internet Banking and Commerce
Vol. 10 No. 1 Spring 2005
http://www.ARRAYdev.com/commerce/JIBC/current.asp


========================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2005-02/0505-Publ.HTM
========================

I start by recommending to all JIBC readers, and especially senior executives,
professionals
and academics, to consider active participation at the First Global Conference
on
Effectiveness, Profitability, Accountability and Investment Climate of
eCommerce, eFinance
and eGovernance (eCommerce Effectiveness and Profitability 2006) that JIBC is
sponsoring,
see www.micromarktech.com/ecep2006/. Thanks to dedicated effort by Prof. Nikhil
Agarwal, Head of ECEP 2006 Organizing Committee and his capable team, this event
promises to become a major global milestone in the history of ecommerce academic
research and advanced practice.

I would like to use this opportunity to thank Gord Jenkins, our retiring Chief
Editor.  His
leadership has always been much appreciated and he will be still a large part of
the
editorial team.  From now on Gord will be listed as the Founding Chief
Editor-Emeritus and
Member of the Editorial Board on the JIBC Web site.  We all hope he will support
JIBC and,
more important, that his wife and himself still enjoy good health in the years
to come.

With Gord leaving, I am pleased to announce that Prof. Nikhil Agarwal, currently
our India
Contributing Editor, has graciously agreed to become JIBC new Chief Editor.  As
some of
you might know, Nik is currently quite busy with setting up JIBC-sponsored
eCommerce
Effectiveness and Profitability 2006 conference in Goa as the Head of its
Organizing
Committee.

Nik has interesting plans for our Journal, particularly to move it towards a
refereed
academic publication, or at least some parts of it.  He thinks it's a great
opportunity for us
to bring JIBC to a new level and increase its visibility and circulation, making
it a definitive
publication in its subject area.  In that, he would have to fill very large
shoes of Gord, our
Founding Chief Editor whose relentless drive brought JIBC to the current
positive state of
development.

Again, I'd much appreciate it if you give Nik your active support and advise him
on how to
achieve these challenging objectives.

A good news is that this JIBC issue is among the best. A bad news is that my
Internet
provider's filters marked it as spam. This is quite serious, as they use just
common
standard filter software.  It means that possibly half of our readers will not
be able to get
the email edition.

Frankly, it is meaningless for us to find out what the filter does not like.
Perhaps it is the
word "ecommerce" repeated many times.  Even if we change it and find what
triggers it,
these filters readjust hourly and hence we are doomed.  This is a direct result
of spammers
making life miserable for legitimate users, which is their main goal anyway.

The only practical solution that I can see is for our Mailing List Managing
Editor Anne-
Marie Jennings to issue ahead a very brief message to watch for JIBC being
issued in the
next 24 hours so our readers can look at their filter reject boxes, if they
would like to read
the new JIBC issue.  The penalty is that it effectively doubles the number of
emails that we
are issuing in a year.

What do you think?  Do any of you see a better solution?  Please email our new
Chief Editor
or me if you see it.

I enjoyed reading all the articles in the new issue; frankly, it is one of the
main perks of
being a member of the JIBC Editorial Board. As a researcher, the closest ones to
my own
subject of interest are two articles by Tom Buschman and Niki Panourgias on the
new role
of corporate treasuries and the development of globally connected financial
services; as
well as by Kalyan Chakravarthy Bondugula and Akash Maiti on the future of SWIFT;
both
are first class and I and my colleagues could definitely learn from them.

Edwin Jacobs provided an exhaustive review of the leading academic ICT-law
programs in
the European Union. It would be interesting to publish similar reviews for all
the others
vertical and geographic segments or global ecommerce, ebanking and ebusiness.
Joachim
Zentes described activities of the Institute for Commerce & International
Marketing at the
Saarland University. My request to all our readers to consider supplying similar
reference
and review materials to JIBC.

Again I am asking each and every one of you, our readers and subscribers, to
email JIBC to
at least 3 of your colleagues, friends and discussion groups that you are
participating at,
and recommend that they also subscribe.

As well, I am challenging all the current and past authors and editors to email
your articles
-- along with the rest of JIBC edition -- to at least 10 of your peers and
colleagues in
academia, government and industry. Make sure they are aware of your articles and
the
Journal of Internet Banking and Commerce! Recommend that they also subscribe to
email
editions. After all, we only send it around 2-3 times a year.

A special appeal to ecommerce/ebusiness students to pass a word about JIBC to
your
professors and classmates and, more important, to ask them to supply new
articles and
tell everybody to subscribe.

Let's spread the word!


/---------------------ADVERTISEMENT -------------------\
CALL FOR PAPERS: eCommerce Effectiveness and Profitability 2006,
Jan 27-29 2006, Goa, India
Journal of Internet Banking and Commerce is pleased to announce the First Global
Conference on Effectiveness, Profitability, Accountability and Investment
Climate of
eCommerce, eFinance and eGovernance (eCommerce Effectiveness and Profitability
2006).
The Theme of the Conference will be "Executive Decision Making: Improving dialog
between the industry, investors, academia and governments". This essential
conference
seeks to establish a vibrant and constructive global dialogue between senior
industry
executives, investors, central bankers, government policymakers and leading
academics
on how to radically improve eCommerce effectiveness and profitability.  Papers
will be
published in the Journal of Internet Banking and Commerce.
http://www.micromarktech.com/ecep2006/
\---------------------ADVERTISEMENT -------------------/


========================
From JIBC Editor-in-Chief Gordon Jenkins
http://www.arraydev.com/commerce/JIBC/2005-02/Editorial%20Spring%202005%
20JIBC.HTM
========================

As I mentioned in previous Editorials, every once in a while it is time to
update and revamp
-- to keep the good but add new ideas. We have been doing this in the last two
edition-
hopefully you have noticed.

The Editorial Team has been emphasizing having a broader or global perspective
-- rather
than a North America/Europe centric focus.

We have now new regular contributing editors this edition for – in alphabetical
order –
Australia, Africa, Japan, Malaysia, Middle East, Singapore and one on security
based in the
U.K. Please check out:
http://www.arraydev.com/commerce/JIBC/editors.asp
for their names and background. Of both the new ones plus our "old" ones.

We are still looking for someone from South America and the Caribbean to round
out the
global perspective.

I would particularly also like to thank the support of the publisher Nahum
Goldmann and
the Assistant Editor Robert Xin Luo.

Read, enjoy and give us your feedback on how we are doing.

Well this is my last Editorial for JIBC as I will be -- as they say -- moving
on.

I have enjoyed my almost 10 years of the "on again -- off again" Editor of JIBC.

The Journal of Internet Banking now -- with this issue -- is where I always
wanted it to be
-- a global respected Journal on internet banking and commerce. This excellent
Edition
proves JIBC is almost there.

And always leave when you are on top -- and this Edition is "tops".

Enjoy.

Regards

Gord Jenkins
Editor JIBC


========================
REGULAR CONTRIBUTORS
========================

UNITED KINGDOM: Phishing - What it is and How it Will Eventually be Dealt With
(By Ian Grigg)
http://www.arraydev.com/commerce/jibc/2005-02/jibc_phishing.HTM
Phishing is an attack on the user and her browser. Addressing phishing
necessarily means
changing the browser, and this creates tensions between those who lose money -
users
and ecommerce sites - and those who need to do the work - browser manufacturers.

UNITED KINGDOM: Identity Cards and Financial Services: How Will the Introduction
of ID
Cards Affect Financial Services Providers
(By David Birch)
http://www.arraydev.com/commerce/jibc/2005-02/birch.htm
We are awash with new payment mechanisms (everything from mobile phones using
infrared to RFID tokens and from Peppercoin to Simpay in the online world).
Attention is
becoming more concentrated, however, with RFID (contactless microprocessor smart
cards) beginning to dominate mind share. RFID has been used successfully in a
range of
programmes, including the Oyster Transport Card in London, UK, the Octopus Card
in
Hong Kong and the MasterCard PayPass programme in the USA. Note the examples:
while
the international schemes are all developing their RFID offerings, for many
people, RFID
isn't really new.

BELGIUM: Some Leading Academic ICT-law Programmes in the European Union
(By Edwin Jacobs)
http://www.arraydev.com/commerce/jibc/2005-02/EdwinJacobs010405.HTM
In this column we give a brief description of some leading academic programs
about ICT-
law in the European Union. On the PLOTEUS-website of the European Commission one
can
find all relevant information about studying in Europe in general. Via its
eLearning Action
Plan, the European Commission wants to encourage further use of electronic means
of
teaching and knowledge and use of ICT-technology as a whole. Some leading
European
universities have organised together a European Legal Informatics Study
Programme
(EULISP) leading to a LL.M. degree.

AUSTRALIA: Ten Tax Issues Relating to Conducting Business in Cyberspace
(By Dale Pinto)
http://www.arraydev.com/commerce/jibc/2005-02/Dale.htm
The rise of Internet commerce will present a range of challenges for the
Australian
Taxation Office (ATO), as it will transcend state and national borders and
commerce will
become truly global in every sense. Small and medium enterprises (SMEs), and
more
consumers than ever before, will have the opportunity from the comfort of their
personal
computers or WebTVs, to buy and sell goods internationally.

MALAYSIA: Multimedia Banking and Technology Acceptance Theories
(By P. Vijayan, Vignesen Permual, and Bala Shanmugam)
http://www.arraydev.com/commerce/jibc/2005-02/vignesan.htm
Human beings, being creatures of habit will probably view anything that is new
with
caution and suspicion. The same applies to multimedia banking. People are
cautious and
often downright reluctant to depart from traditional brick and mortar banks to
electronic
click and avatar banks. On the other hand, however with the threat of
globalization in
sight and possible squeezes in margins banks are attempting to 'push' clients
towards
multimedia banking.

CANADA: Entering the Internet Race: The Early Years of the Internet and Internet
Commerce in Japan
(By Carin Holroyd)
http://www.arraydev.com/commerce/JIBC/2005-02/Japan.HTM
Ten years ago, Japan lagged well behind in the race to capitalize on the
commercial and
other possibilities of the Internet. Cumbersome government regulations and an
Internet-
averse business community combined with aspects of Japanese society to make the
Internet less compelling in Japan than other countries. The advent of the mobile
Internet
resulted in an exponential growth in Japanese e-commerce and m-commerce,
vaulting the
country into the world lead in the development of profitable Internet-based
business
models. This essay summarizes the early history of the Internet in Japan and
outlines the
general contours of Internet commerce in the country.

SINGAPORE: Bridging Strong Authentication with PKI
(By Tan Teik Guan)
http://www.arraydev.com/commerce/JIBC/2005-02/otpk.htm
With the banks investing heavily in strong 2-factor authentication
infrastructures for their
Internet Banking systems, there must be a greater business justification for
implementing
and maintaining this investment. This can be materialized through the banks
exploiting
the 'secured' Internet channel to carry out larger volume and higher-value
transactions
with their clients. The use of PKI (Public Key Infrastructure) for digital
signatures on these
transactions will give the banks the legal recourse and protection (through the
digital
signature laws) to launch more products over the Internet or push for more
B-to-B
straight-through processing for greater business efficiencies.

UAE: Internet Banking: An Empirical Investigation Into the Extent of Adoption by
Banks and
the Determinant of Customer Satisfaction in the United Arab Emirates
(By Raed Awamleh and Cedwyn Fernandes)
http://www.arraydev.com/commerce/JIBC/2005-02/raedcedwyn1.HTM
Although the banking sector in the United Arab Emirates is a regional leader,
internet
banking in the United Arab Emirates is yet to be properly utilized as a real
added value
tool to improve customer relationship and to attain cost advantages. To identify
factors
influencing satisfaction of internet banking customers, data was collected from
internet
banking users in the United Arab Emirates. To examine the data, a factor
analyses and
multiple regression analyses were conducted. It was revealed that convenience
and
security of internet banking transactions have a significant impact on
satisfaction. The
effects of age, gender, number of years as an internet banking user were also
explored.
Security of internet banking transactions was significant for those using
internet banking
for more than two years, while not for others. Implications of results were
discussed, and
future research directions outlined.

SOUTH AFRICA: Determinants of Internet and Cell Phone Banking Adoption in South
Africa
(By Irwin Brown and Alemayehu Molla)
www.arraydev.com/commerce/JIBC/2005-02/brown. HTM
More and more banks are turning to self-service technologies to provide
customers with
many channels to access products and services. Internet and cell phone are some
of the
least cost and increasingly popular financial services delivery channels. In
developing
countries though, the level of information and communications technology
development,
the cost of Internet and the limited bandwidth of mobile networks and other
access
technologies constrain such innovation. In this paper, we explore the factors
that affect
Internet and Cell Phone banking adoption in South Africa. We also compare the
differences
in the perception of Internet banking and cell phone banking and the influence
factors.
The findings indicate that both the adoption intent and the perception of
Internet banking
users differ markedly from cell phone banking users. The results are discussed
and some
implications for banks are outlined.


/---------------------ADVERTISEMENT -------------------\
CALL FOR PAPERS: eCommerce Effectiveness and Profitability 2006,
Jan 27-29 2006, Goa, India
Journal of Internet Banking and Commerce is pleased to announce the First Global
Conference on Effectiveness, Profitability, Accountability and Investment
Climate of
eCommerce, eFinance and eGovernance (eCommerce Effectiveness and Profitability
2006).
The Theme of the Conference will be "Executive Decision Making: Improving dialog
between the industry, investors, academia and governments". This essential
conference
seeks to establish a vibrant and constructive global dialogue between senior
industry
executives, investors, central bankers, government policymakers and leading
academics
on how to radically improve eCommerce effectiveness and profitability.  Papers
will be
published in the Journal of Internet Banking and Commerce.
http://www.micromarktech.com/ecep2006/
\---------------------ADVERTISEMENT -------------------/


========================
FEATURE ARTICLES
========================

UNITED KINGDOM: Applying Standardised, Interoperable and Innovative Automated
Solutions: Corporate Treasuries and the Development of Globally Connect
Financial
Services
(By Tom Buschman and Nikiforas S. Panourgias)
http://www.arraydev.com/commerce/jibc/2005-02/buschman.HTM
Large multinational corporations operate in a wide variety of countries with a
range of
risks associated with their size, infrastructures and operational practices.
Increasingly
ubiquitous and powerful ICTs have enabled the centralisation of many support
functions
from local operations to the corporate headquarters. This, in turn, has led to a
concentration of contracting for financial services with global and strong
regional banks,
primarily in Western countries by corporate treasuries. In this context, the
development
and adoption of standardisation in informational linkages can become a crucial
component in remote and centralised decision-making by providing a mechanism for
re-
engaging financial service providers in emerging markets in the execution of
financial
services with limited intermediation from global or regional banks. Prime broker
services,
for example, combined with an efficient processing of transactions, can
facilitate enhanced
international market access for local financial institutions by providing the
necessary credit
intermediation between multinational corporations and local financial
institutions.

MALAYSIA: Internet Activities Among Malaysian Insurance Companies
(By Ainin Sulaiman, Noor Ismawati Jaafar and Tee Chee Kiat)
http://www.arraydev.com/commerce/jibc/2005-02/jaafar.htm
The Central Bank of Malaysia (Bank Negara of Malaysia) has established
guidelines that
allow insurers to offer their services online. This study describes the extent
of Internet
usage among Malaysian insurers. Some insurers have already begun to use the
Internet to
conduct their daily business transactions, some are in the midst of planning to
use and
some do not have plan to use at all. Many of them stated that security, customer
readiness
and cost of initial investment were important considerations when deciding to
adopt
Internet technologies.

MALAYSIA: The Profiling of the Internet Banking Adopter
(By Kooi Guan Cheah, Sanmugan A. AmBank, and Soon Yin Tan)
http://www.arraydev.com/commerce/jibc/2005-02/profiling.HTM
The change of outsourcing business has transformed from the outsourcing of
generic IT
services to the outsourcing of specific IT services Information System
Outsourcing. The
basic need of the customer is to find an adaptable and comprehensive Information
and
Communication Technology (ICT) management solution. Service Providers have to
ensure
end-to-end service is protected, all the elements must be included, physical
protection to
the core communications infrastructure, including network equipment, routers,
switches,
servers and so on, back-up power sources located in bunkers, virtually
defence-level
protection, have to be available to ensure uninterrupted network operation.

MALAYSIA: Incorporating Electronic Business Initiatives in Health Services and
Health
Tourism: A Case Study of Malaysia
(By Mohammed Talh and Abdullah Sallehhuddin Abdullah Salim
http://www.arraydev.com/commerce/JIBC/2005-02/Talha.htm
The Internet has resulted in the emergence of virtual markets with four primary
distinctive
characteristics, which are real time, shared, open and global. Incorporating
E-business
initiatives in health services aims to go beyond the traditional modes of
healthcare delivery
and instead, provide greater access to better and higher quality healthcare. It
is achieved
by grabbing opportunities of enhanced multimedia and information technologies
and
developing new technological solutions. In addition, E-business initiative is
incorporated
in enhancing health tourism sector through cost cutting strategies and improving
quality
of patients' care.

USA: SWIFT: Can This Elephant Dance?
(By Kalyan Chakravarthy Bondugula)
http://www.arraydev.com/commerce/JIBC/2005-02/chakravarthy.htm
"The Society for Worldwide Interbank Financial Telecommunication (S.W.I.F.T.) is
a
Brussels-based, member-owned body that aims to provide low-cost, competitive
financial
processing and communication services while maintaining high levels of quality,
integrity,
reliability, and security. SWIFT has been relatively successful in meeting the
expectations
of its members. However, rapid disruptive changes in technology have facilitated
emergence of a new breed of challengers. This has forced SWIFT to react quickly
and
adopt a new strategic posture to not only retain its dominant position in the
banking
messaging space but also improve its position in securities and corporate
messaging
markets.

GERMANY: Multi-Channel Retailing
(By Hanna Schramm-Klein and Dirk Morschett)
http://www.arraydev.com/commerce/JIBC/2005-02/schramm-klein.htm
Multi-channel retailing entails the parallel use by retailing enterprises of
several sales
channels. The results of an online buyer survey which has been conducted to
investigate
the impact of multi-channel retailing (i.e. the use of several retail channels
by one retail
company) on consumer behaviour show that the frequently expressed concern that
the
application of multi-channel systems in retailing would be associated with
cannibalization
effects, has proven unfounded. Indeed, the appropriate degree of similarity,
consistency,
integration and agreement achieves the exact opposite. Different channels create
different
advantages for consumers. Therefore the total benefit an enterprise which has a
multi-
channel system can offer to its consumers is larger, the greater the number of
available
channels. The use of multi-channel systems is associated with additional
purchases in the
different channels. Such systems are thus superior to those offering only one
sales channel
to their customers. Furthermore, multi-channel systems with integrated channels
are
superior to those in which the channels are essentially autonomous and
independent of
one another. In integrated systems, consumers can achieve synergy effects in the
use of
sales-channel systems. Accordingly, when appropriately formulated, multi-channel
systems in retailing impact positively on consumers. They use the channels more
frequently, buy more from them and there is a positive customer-loyalty impact.
Multi-
channel systems are strategic options for achieving customer loyalty, exploiting
customer
potential and for winning new customers. They are thus well suited for
approaching
differing and varied target groups.

GERMANY: Institute for Commerce & International Marketing at the Saarland
University,
Germany: A Research Center in the Field of Retail Management and E-Commerce
(By Joachim Zentes)
http://www.arraydev.com/commerce/JIBC/2005-02/zentes.htm
The Institute for Commerce & International Marketing (formerly: Institute for
International
Marketing) at the Saarland University, Saarbruecken, Germany, was established in
1991. Its
director is Prof. Dr. Joachim Zentes. The first activity of the institute is
university
education. The institute is at the same time closely connected to one of the
chairs of
business administration at Saarland University. About 150 to 200 students per
semester
are educated in lessons on retail management, logistics and IT, international
marketing
and international business. In addition to the undergraduate program, the
researchers of
the institute are involved in the activities of the so called Europa-Institute
at the Saarland
University, a MBA-program, in which graduate students from all over the world
are taught
in all aspects of international business, with a special focus on the European
integration
process.

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meet the
budget requirements of even small firms.  Further information is at:
http://www.addsecure.net/info/service.htm
\---------------------ADVERTISEMENT -------------------/


====================
Administrative Notice
====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic commerce
professionals and executives on principal developments, benchmark practices, and
future
trends in the Internet-based marketing practices of governments and industry.
This free
online interactive journal is a way to keep in touch, to share information, and
to establish
business contacts (networking) for worldwide professionals that specialize in
electronic
commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based banking
and
electronic trends and practices from around the world. Our priority is quality,
not quantity.
We want to maintain JIBC as a service that provides substantial information and
an
effective forum for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals, academicians and
publishers
to submit important announcements, original articles, guest columns and
significant
feature presentations. We also welcome surveys, book reviews and letters to the
Editor.
Technical discussions in highly specialized areas of expertise will be kept to
an absolute
minimum.

JIBC is formally issued three to four times a year when an email summary of
current
articles is distributed to subscribers. The full text of current articles is
posted on the JIBC
Web site at http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking and
Commerce
Initiatives at
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books, and services
that they
think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a service by
ARRAY
Development based in Ottawa, Canada. Views expressed are those of the authors
and are
not necessarily shared by ARRAY Development. Firms or individuals interested in
sharing
sponsorship of this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive http://www.arraydev.com/commerce/jibc/articles.htm contains
all
articles published to date.

You can reach the Editor-in-Chief Prof. Nikhil Agarwal with any questions or
comments by
email at:
nikhil.jibc@...

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


Editorial Board
http://www.arraydev.com/commerce/jibc/editors.asp

Publisher and Member of the Editorial Board: Nahum Goldmann

Chief Editor: Gord Jenkins

Chief Editor-Designate: Prof. Nikhil Agarwal

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord Jenkins

Assistant Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
U.K. Contributing Editor: David G.W.Birch
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Legal Contributing Editor: Edwin Jacobs
India Contributing Editor: Nikhil Agarwal
Middle East Contributing Editor: Raed Awamleh
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut

Please send any questions related to maintenance of the Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

/---------------------ADVERTISEMENT -------------------\
CALL FOR PAPERS: eCommerce Effectiveness and Profitability 2006,
Jan 27-29 2006, Goa, India
Journal of Internet Banking and Commerce is pleased to announce the First Global
Conference on Effectiveness, Profitability, Accountability and Investment
Climate of
eCommerce, eFinance and eGovernance (eCommerce Effectiveness and Profitability
2006).
The Theme of the Conference will be "Executive Decision Making: Improving dialog
between the industry, investors, academia and governments". This essential
conference
seeks to establish a vibrant and constructive global dialogue between senior
industry
executives, investors, central bankers, government policymakers and leading
academics
on how to radically improve eCommerce effectiveness and profitability.  Papers
will be
published in the Journal of Internet Banking and Commerce.
http://www.micromarktech.com/ecep2006/
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Journal of Internet Banking and Commerce
Vol. 9 No. 3, December 2004
http://www.ARRAYdev.com/commerce/JIBC/current.asp


========================
From JIBC Publisher Nahum Goldmann and Editor-in-Chief Gord Jenkins
http://www.arraydev.com/commerce/jibc/0412-edit.HTM
========================

Once again we start from the most important by asking each and every one of you,
our readers and subscribers, to email JIBC to at least three of your colleagues,
friends and discussion groups that you are participating at, and recommend that
they also subscribe!

As well, we are challenging all the current and past authors and editors to
email your articles along with the rest of JIBC edition to at least 10 of your
peers and colleagues in academia, government and industry. Make sure they are
aware of your articles and the Journal of Internet Banking and Commerce!
Recommend that they also subscribe.

***

This issue is especially professionally mature and conceptually interesting. As
usual, we have a number of articles from all over the world. Most of them are
providing a highly desirable mix of quantitative analysis and qualitative
conclusions. All are highly applicable to the emerging areas of Internet
commerce, banking and governance, as well as marketing, law, procurement and
security/privacy.

In the future issues of JIBC we would like to maintain the momentum of edgy
results that characterizes this publication. At the same time we want to see
more of the overviews and surveys on the global situation with Internet commerce
and banking. Please send us brief lists and reviews of world-leading ecommerce,
e-governance and IP-law academic programs. Send us articles on the activities of
academic and applied research groups and on industrial, public and voluntary
sectors' innovation teams that you are familiar with or participate at,
especially as it relates to ecommerce issues. Feel free to involve any expert
on this exciting subject anywhere in the world. Challenge them to write for
JIBC.

Both the JIBC Publisher and Editor-in-Chief would like to use this occasion to
thanks again our authors, our volunteer contributing editors and, especially,
Assistant Editor Xin "Robert" Luo who despite his busy educational schedule
found time to manage placing of new articles on JIBC Web site, as well as
Mailing List Managing Editor Anne-Marie Jennings who for the last 18 months is
successfully managing our Yahoo mailing list. Your dedicated effort is much
appreciated!

***

Let's spread the word!


========================
Urgent Message from India Contributing Editor Nikhil Agarwal:
How can you help Tsunami Victims?
========================

Millions of people around the Indian Ocean are scrambling for food and clean
water, with the threat of disease now stalking survivors of the most devastating
tsunami on record.

The official death toll soared to nearly 80,000 on Thursday, but the true scale
of the disaster may not be known for days, or even weeks, as rescuers struggled
to reach stricken areas and grieving survivors searched for relatives.

"I would not be at all surprised that we will be on 100,000 (deaths) when we
know what has happened on the (Indian) Andaman and Nicobar islands," Peter Rees
of the International Federation of Red Cross and Red Crescent Societies (IFRCS)
said.

Countries around the world sent rescue teams, food and millions of dollars in
aid to the hardest-hit nations of Indonesia, Sri Lanka, India and Thailand to
cope with the aftermath of the century's worst natural disaster.

Thousands of bodies rotting in the tropical sun were tumbled into mass graves.
Contaminated water, ruptured sewage systems and mosquito-borne diseases now
stalk those who survived the monster wave on Sunday, triggered by a 9.0
magnitude underwater quake off the Indonesian island of Sumatra.

"Perhaps as many as 5 million people are not able to access what they need for
living," David Nabarro, who heads the World Health Organisation's health crisis
team, told Reuters. "Either they cannot get water, or their sanitation is
inadequate or they cannot get food."

We appeal to the citizens of the world to HELP the people in NEED. Make this New
Year 'Happy' for those, who want food, water and living. Imagine surviving
without basic necessities, without a family. Professors., staff and students of
our college has decided to give away one week salary to relief fund. Your little
help can make the difference. Contribute generously.

You can send your cheques / drafts in any currencies in favour of "RELIEF FUND
FOR TSUNAMI VICTIMS" payable at New Delhi, India. Kindly send your contribution
to the following address:

Relief Fund For Tsunami Victims
c/o Prof. Nikhil Agarwal
R - 7/22, Rajnagar
Ghaziabad 201001
INDIA
Ph: +91-9810216826

PS: Kindly forward and circulate this email to your friends and organization all
over. Remember each and every penny will make a difference to the millions of
people who are fighting to LIVE.
--
Nikhil Agarwal
Assistant Professor,
Institute of Management Technology (IMT),
INDIA
<nikhil.jibc@...>
#+91-9810216826,9850391092
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3-5 March 2005, Hammamet, Tunisia
You are encouraged to submit papers in all areas of accounting, banking control
and supervision, finance, management, financial economics, Internet and new
economy, corporate finance, accounting and auditing, financial markets,
investment and financing problems, emerging markets, derivatives, real options,
portfolio theory, macro-economics and finance, international finance,
international trade, techniques in international trade, international taxation,
mathematical finance, econometric issues, statistics, electronic payment,
Internet banking, finance and the new economy, financial liberalization and
innovation, transition economies and their problems, open economic issues,
foreign direct and portfolio investment, e-commerce, etc.  Electronic
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contact@.... Selected papers can be published in the International Journal
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========================
REGULAR CONTRIBUTORS
========================

UNITED KINGDOM: Identity Cards and Financial Services: How Will the
Introduction of ID
Cards Affect Financial Services Providers?
(By Dave Birch)
http://www.arraydev.com/commerce/jibc/2004-12/birch.htm

It is clear that without significant change the identity problem will only get
worse. In a recent US case, what the authorities there call the biggest case of
identity theft ever, just two men orchestrated an identity fraud that hit 30,000
Americans and netted $50 million. The financial services sector is at the
forefront of the fight. More than half of all identity fraud in the US relates
to banking and, as the fraudsters become more widespread and more wise, banks
and other financial services providers will find more and more of their
resources being tied up by identity problems of all kinds. The problem of
identity and identity management can only increase in priority and trying to
solve it by asking customers to remember more and more passwords is a waste of
time.

MALAYSIA: Wavs of Multimedia Banking Development
(By VP.Vijayan, Vignesen Perumal and Bala Shanmugam)
http://www.arraydev.com/commerce/jibc/2004-12/Vijayan.HTM

This exploratory study on the rise of multimedia banking highlights the 'waves'
of development experienced by the banking industry, the initial step being the
ATM wave, followed by the PC wave and finally the E-cash wave all of which have
revolutionized the banking industry. In addition, the opportunities and threats
for banks as a result of new technology are examined as well as the existing
remedies to these threats.

MALAYSIA: Internet Banking: Boon or Bane?
(By Vignesen Perumal and Bala Shanmugam)
http://www.arraydev.com/commerce/jibc/2004-12/Perumal.HTM

There is little doubt that the Internet has revolutionized the entire
communication system. As much as banking involves communication in one way or
the other, banks have joined the communication bandwagon. Having observed the
astronomical growth rate and acknowledging the potential banks adapting and
often adapting the Internet to suit their functions and roles. As in any new
venture there are setbacks in terms of issue of security and associated costs.
As a consequence banks are working towards remedying these shortcomings so as to
take full advantage of the digital revolution.

USA: The Phishing Hook: Issues and Reality
(By Qinyu Liao and Xin Luo)
http://www.arraydev.com/commerce/jibc/2004-12/Phishing.HTM

Phishing attacks have become increasingly serious and spread more rapidly
because of its ease of launching, difficulties to be caught and the monetary
benefit behind it. As currently there is no single technology that has been
effective in deterring phishing, the authors pointed out the trends in
prevention of phishing and emphasized the importance of preventive measures,
such as awareness education, collaboration in information sharing and
standardization, legal enforcement etc.

INDIA: Cyber Branding: An Exploratory Study of Virtual Organizations
(By Smriti Yash Verma and Nikhil Agarwal)
http://www.arraydev.com/commerce/jibc/2004-12/Nikhil.HTM

Virtual organizations are those that do not have any brick-and-mortar structure,
thus enhancing the need of physical evidences. In this case, branding takes the
front seat to successfully pose the site on the Internet. The present study was
undertaken to understand and analyze the factors affecting e-branding. It has
been observed that "Downloading Speed" and Logo & Punch Line" are most preferred
attributes for branding on Internet.


========================
FEATURE ARTICLES
========================

BELGIUM: Electronic Invoicing: More Than Just VAT Aspects
(By Edwin Jacobs)
http://www.arraydev.com/commerce/jibc/2004-12/Jacobs131204.HTM

European legislation facilitates that companies start using electronic
invoicing. The aim of the European E-invoice Directive was to introduce some
uniform rules regarding VAT throughout the European Union. Some other important
legal aspects, such as the probative value of an e-invoice, endorsement,
e-invoices in bankruptcy proceedings,remain often unexamined. EU Member State
law can be construed and interpreted according to the European Directives, for
legal issues not covered by the E-invoice Directive. When the security issues
are covered, such as the authenticity of the origin and the integrity of the
contents (i.e. essential requirements of the E-invoice Directive), so that
can be assured that the invoice remains unchanged and readable, e-invoices and
paper invoices should have the same legal value.

SINGAPORE: Strong(er) User Identification
(By Tan Teik Guan)
http://www.arraydev.com/commerce/jibc/2004-12/Guan.HTM

As more people use the electronic and Internet platform to carry out more
sensitive and higher valued transactions, the need for organizations that
operate such systems to have the ability to remotely ascertain the identity of
the user becomes extremely critical. In this paper, some of the questions that
organizations must ask when sourcing for 2-factor authentication solutions, and
show that with a flexible solution, 2-factor authentication need not be painful
or costly are highlighted.

SWEDEN: End-to-End Management in ICT Managed Services
(By Isto Kannisto)
http://www.arraydev.com/commerce/jibc/2004-12/KannistoIsto.asp

The change of outsourcing business has transformed from the outsourcing of
generic IT services to the outsourcing of specific IT services Information
System Outsourcing. The basic need of the customer is to find an adaptable and
comprehensive Information and Communication Technology (ICT) management
solution. Service Providers have to ensure end-to-end service is protected, all
the elements must be included, physical protection to the core communications
infrastructure, including network equipment, routers, switches, servers and so
on, back-up power sources located in bunkers, virtually defence-level
protection, have to be available to ensure uninterrupted network operation.


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it can meet the budget requirements of even small firms.  Further information is
at:
http://www.addsecure.net/info/service.htm

\---------------------ADVERTISEMENT -------------------/


====================
Administrative Notice
====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic commerce
professionals and executives on principal developments, benchmark practices, and
future trends in the Internet-based marketing practices of governments and
industry. This free online interactive journal is a way to keep in touch, to
share information, and to establish business contacts (networking) for worldwide
professionals that specialize in electronic commerce, governance and banking
solutions.

In JIBC you will find informed discussion of the latest internet-based banking
and electronic trends and practices from around the world. Our priority is
quality, not quantity. We want to maintain JIBC as a service that provides
substantial information and an effective forum for your articles, your letters,
your insights and ideas.

JIBC invites banking and electronic commerce professionals, academicians and
publishers to submit important announcements, original articles, guest columns
and significant feature presentations. We also welcome surveys, book reviews and
letters to the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email summary of
current articles is distributed to subscribers. The full text of current
articles is posted on the JIBC
Web site at http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking and
Commerce Initiatives at http://www.arraydev.com/frames/f-guest_comp.htm. We
invite readers to provide brief descriptions of products, books, and services
that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a service by
ARRAY Development based in Ottawa, Canada. Views expressed are those of the
authors and are not necessarily shared by ARRAY Development. Firms or
individuals interested in sharing sponsorship of this project may contact array
(at) ARRAYdev.com.

The JIBC Web Archive http://www.arraydev.com/commerce/jibc/articles.htm contains
all articles published to date.

You can reach the Editor-in-Chief Gord Jenkins with any questions or comments by
email at:
jenkins@...

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.

Editorial Advisory Board

Publisher: Nahum Goldmann

Chief Editor: Gord Jenkins

Assistant Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
U.K. Contributing Editor: David G.W.Birch
Nordic Countries Contributing Editor: Minna Mattila
Legal Contributing Editor: Edwin Jacobs
India Contributing Editor: Nikhil Agarwal
Middle East Contributing Editor: Saheer Al-Jaghoub
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut


Please send any questions related to maintenance of this Web site to:
array (at) ARRAYdev.com

Information and subscription for JIBC mailing list is available via:
http://groups.yahoo.com/group/JIBC/

Journal of Internet Banking and Commerce
Vol. 9 No. 2, July 2004

====================

TABLE OF CONTENTS

====================

Editorial (Gordon Jenkins)
http://www.arraydev.com/commerce/jibc/0604-Edit.asp

From the Publisher (Nahum Goldmann)
http://www.arraydev.com/commerce/jibc/0406-pub.asp

From our contributing editors:

UNITED KINGDOM: Phish and Chips: We're with Bill Gates - We'll Never Fix this
Problem
Without Smart Cards
(By Dave Birch and Steve Pannifer)
http://www.arraydev.com/commerce/jibc/0403-06.htm

FRANCE: The Development of Electronic Money: Toward the Privatization of Money
Issue?
(By Nathalie Janson)
http://www.arraydev.com/commerce/jibc/0406-04.asp

FINLAND: Service Bundling As Pricing Strategy for Mobile Services: A
Scandinavian
Perspective
(By Mannukka Juha and Mattila Minna)
http://www.arraydev.com/commerce/jibc/0406-06.asp


Feature Articles:

UNITED STATES: The Internet Classroom and Plagiarism: Detecting the Problem
(By Shelly R. Topp, Barbara E. Hightower, LaVelle H. Mills, and R. Nicholas
Gerlich)
http://www.arraydev.com/commerce/jibc/0403-02.htm

UNITED STATES: The Internet Classroom and Plagiarism: Dealing with the Problem
(By Shelly R. Topp, Barbara Hightower, LaVelle H. Mills, and R. Nicholas
Gerlich)
http://www.arraydev.com/commerce/jibc/0403-03.htm

UNITED STATES: Micropayments in Wireless M-Commerce: Issues, Security, and
Trends
(By Xin Luo)
http://www.arraydev.com/commerce/jibc/0402-10.htm

UNITED STATES: Marketing Technologies and Practices Offer Outsourcing Providers
(India)
the Next Competitive Advantage
(By Abel Stephen)
http://www.arraydev.com/commerce/jibc/0403-04.htm

TRINIDAD: Socio-Legal Issues Affecting the Use of Digital Signatures for Secure
E-
Commerce Transactions: A Caribbean Perspective
(By Richard M. Escalante)
http://www.arraydev.com/commerce/jibc/0403-05.htm

OMAN: Adoption and Use of Internet Banking in the Sultanate of Oman: An
Exploratory
Study
(Imtiyaz Al-Sabbagh and Alemayehu Molla)
http://www.arraydev.com/commerce/jibc/0406-07.asp

INDIA: The adoption of Internet Banking: An Empirical Investigation of the
Indian Banking
Sector
(By Balwinder Singh and Pooja Malhotra)
http://www.arraydev.com/commerce/jibc/0406-08.asp

NETHERLANDS: The Customer Relations Government: The Quality of Electronic
Municipal
Services in the Netherlands
(By M Wissinkand A. J. G. M. van Montfort)
http://www.arraydev.com/commerce/jibc/0406-09.asp

INDIA: Maneuvering Best Business Practices to Improve the Quality of
E-Governance
Services
(By Kapil Mohan Garg, Nikhil Agarwal, and Arun Mohan Sherry)
http://www.arraydev.com/commerce/jibc/0406-10.asp

Book Review:

CANADA: "Sales Force Management in the Financial Services"
(By Paul S. Bates)
http://www.arraydev.com/commerce/jibc/0406-05.asp
Reviewed by Nahum Goldmann

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6th Annual Canadian Private Equity Markets Summit, November 15, 2004,
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point to:
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call 1-888-777-1707.

\---------------------ADVERTISEMENT -------------------/

====================

EDITORIAL

====================
By Gord Jenkins
Editor-in-Chief
http://www.arraydev.com/commerce/jibc/0406-edit.asp

Every once in a while it is time to update and revamp - to keep the good but add
new
ideas. We are doing that starting this and next edition of the Journal of
Internet Banking
and Commerce.

The focus will be increased from Banking and Commerce to include Government.
Electronic Government (E Gov) is growing and converging with commerce and
banking.
New ideas are coming out of the E Gov area - ideas too important to miss.

The focus will be expanded to include more articles from non North American and
Europe
countries. We will still keep our regular columnist from these two areas, but
will be looking
to more regular contributors from other area. We start with the Middle East and
Asia.
Hopefully you will notice we have quietly added a regular contributor from India
and
Malaysia. We will be actively soliciting from China and Korea in Asia. For this
we would like
to welcome a new Assistant Editor Robert Xin Luo who has agreed to take on the
Asia
challenge. (Check his particulars out at: http://www.arraydev.com/commerce/jibc/
editors.asp).

I am looking for a similar person in the Middle East. Please let me know if
anyone is out
there is interested in the Middle East portfolio. Other areas next in line are
Africa, South
America and the Caribbean.

We are approaching our ninth year of publication thanks to support of publisher
Nahum
Goldmann of ARRAY Development. The JIBC is the only business (banking, IT
Business
software and hardware etc) and academic journal I know of. We try to mix the
both - our
longest contributing columnist is a businessperson specializing in card
technology.

Stay tuned in our next edition for even more changes to JIBC. Please give me
your
feedback to changes - either through the JIBC Guestbook or an E Mail direct to
me.

The current issue is actually one of the strongest issues that JIBC has had so
far in our
close to 9 years of existence. This is due to the quality and respected authors
who are
contributing - thank you authors. And thank you readers - feedback please!

/---------------------ADVERTISEMENT -------------------\
             The World-Leading Web Security Audit

ADDSecure.Net(TM) Audit encompasses a range of Internet network and
server audit and testing services. The program is powerful enough to
satisfy the strenuous demands of leading government organizations,
banks and private corporations, yet it can meet the budget
requirements of even small firms.  Further information is at
http://www.addsecure.net/info/service.htm
\---------------------ADVERTISEMENT -------------------/

========================

FROM JIBC PUBLISHER

========================

I am immensely proud to repeat what I wrote as JIBC Publisher many years back,
in
September 1996 (please do look time to time at JIBC archives at http://
www.arraydev.com/commerce/JIBC/articles.htm, you might find the material there
most
enlightening):

  *** "...Very few electronic publications survive beyond Volume 1, Number 1.
Both I and
ARRAY Development are very proud to see JIBC appear for the fifth time and enter
its
second year of existence. [and soon it will be the 10th year!, indeed time is
running fast
when you have that much fun -- ng]

  "To publish a serious Journal is always a struggle for quality and relevance.
We have been
very fortunate in attracting first rate authors and contributing editors. Their
insights and
commentaries inform and entertain nearly 1,000 subscribers to our email edition
and
thousands of visitors to the Web archive.

  "One attraction of an electronic format is that there's always room for new
contributors to
inform our readership and to analyze both ongoing and proposed initiatives. Can
you
provide insight into which banks are providing serious services over the
Internet? Which
Internet catalog stores make money? Which airlines have Internet sales programs
that
really make a difference? How do you convert tire kickers into customers?

  "If you have an idea for an article or continuing column, please email a brief
proposal to
[our most capable and distinguished Chief Editor Gord Jenkins
gordjenkins@...].

  "Whether you are a subscriber or contributor, your participation in JIBC is
important.
Internet banking and commerce are practical activities whose real value lies not
in the
misplaced media excitement but rather in the transactional delivery of everyday
services.
Much of what is happening has important implications; some developments are very
transitory. Working together, we can maintain JIBC as the pre-eminent forum for
sorting
the grain from the chaff.

  "That was the goal we set for JIBC a year ago. It remains our goal for the
year, and the
years, ahead."

  ***

  What more could I add today to the above? We are staying on the same editorial
course
and every word is as relevant today as it was in 1996.

  I am asking you, our readers and subscribers, to email JIBC to at least 3 of
your
colleagues, friends and discussion groups that you are participating at and
recommend
that they also subscribe.

  As well, I am challenging all the current and past authors and editors to email
your
articles - along with the rest of JIBC edition - to at least 10 of your peers
and colleagues in
academia, government and industry. Make sure they are aware of your articles and
the
Journal of Internet Banking and Commerce! Recommend that they also subscribe.

  Let's spread the word!

========================

REGULAR CONTRIBUTORS

========================

UNITED KINGDOM: Phish and Chips: We're with Bill Gates - We'll Never Fix this
Problem
Without Smart Cards
(By Dave Birch and Steve Pannifer)
http://www.arraydev.com/commerce/jibc/0403-06.htm

You can't have failed to notice reports of a major Internet crime wave underway
on both
sides of the Atlantic at the moment: phishing. This means duping consumers into
divulging financial information using spoof web sites [1]. In non-cool,
un-hacker terms,
the fishing involves sending out spam e-mails to try and tempt unwary consumers
into
visiting the fraudsters web sites.

FRANCE: The Development of Electronic Money: Toward the Privatization of Money
Issue?
(By Nathalie Janson)
http://www.arraydev.com/commerce/jibc/0406-04.asp

The development of electronic means of payment concerns the monetary authorities
since
these new forms of payment could challenge their ability to implement monetary
policy
efficiently. This would be the case if electronic money or e-money were a
private form of
money: in other words, if both banks and non-banks were able to issue it without
relying
on base money. Based on a free banking framework, the paper shows that only
pre-paid
cards are similar to private notes such as those issued by free banks in the
past. As a
consequence, the control of the central bank over the quantity of money is not
seriously
undermined. Moreover to prevent this risk materializing, the European central
bank now
decrees that any new kind of e-money be issued only by commercial banks holding
reserve requirements.

FINLAND: Service Bundling As Pricing Strategy for Mobile Services: A
Scandinavian
Perspective
(By Mannukka Juha and Mattila Minna)
http://www.arraydev.com/commerce/jibc/0406-06.asp

At the moment one of the most potential and interesting pricing method for
mobile
services business is a bundle pricing strategy. According to prior studies the
service
bundling is preferred especially by customers of mobile and electronic services.
This study
is exploratory and it has provided an empirical market specific evidence and
support for
mobile service providers to apply the service bundling strategy in Finnish and
Scandinavian markets.

========================

FEATURE ARTICLES

========================

UNITED STATES: The Internet Classroom and Plagiarism: Detecting the Problem
(By Shelly R. Topp, Barbara E. Hightower, LaVelle H. Mills, and R. Nicholas
Gerlich)
http://www.arraydev.com/commerce/jibc/0403-02.htm

While the Internet offers many facilities for enriching the marketing classroom,
it also
facilitates plagiarism among students. However, there are now various for fee
and for free
services on the Internet that help the college professor detect the copy and
paste scholar.
This article discusses the extent of plagiarism on the college campus and
introduces the
reader to available plagiarism detection services.

UNITED STATES: The Internet and Classroom Plagiarism: Dealing with the Problem
(By Shelly R. Topp, Barbara E. Hightower, LaVelle H. Mills, and R. Nicholas
Gerlich)
http://www.arraydevcom/commerce/jibc/0403.03.htm

While the Internet offers many facilities for enriching the marketing classroom,
it also
facilitates plagiarism among students. An earlier article discussed the extent
of the
plagiarism problem on campus and various for fee and for free services on the
Internet
that help the college professor detect the copy and paste scholar. This article
offers
strategies for common assignments that will help to minimize student plagiarism.

UNITED STATES: Micropayments in Wireless M-Commerce: Issues, Security, and
Trends
(By Xin Luo)
http://www.arraydev.com/commerce/jibc/0402-10.htm

Although micropayments were once considered one of the Internet's great
failures, the
wireless mobile commerce now presents an arena ripe with possibilities to
resurrect
micropayment technology. Merging these technologies requires serious
consideration,
including a number of significant security concerns in Bluetooth wireless
technology. While
a variety of micropayment issues remain unresolved, the future trend of wireless
micropayments seems hopeful.

UNITED STATES: Marketing Technologies and Practices Offer Outsourcing Providers
(India)
the Next Competitive Advantage
(By Abel Stephen)
http://www.arraydev.com/commerce/jibc/0403-04.htm

The networked global marketplace is one of four trends that have significantly
affected
world trade. One resultant issue is that of outsourcing. India can maintain its
existing pre-
eminence as an outsourcing provider by carefully and speedily evolving two
critical areas;
namely, native communications/infrastructure technologies as well the marketing
technologies/practices specifically geared for the Internet medium.

TRINIDAD: Socio-Legal Issues Affecting the Use of Digital Signatures for Secure
E-
Commerce Transactions: A Caribbean Perspective
(By Richard M. Escalante)
http://www.arraydev.com/commerce/jibc/0403-05.htm

This article examines the socio-legal issues surrounding the role of digital
signatures as
an internet technology for secure e-commerce transactions in Caribbean
developing
countries. It highlights the view that as internet technologies become more
affordable in
developing countries, the societal changes surrounding digital signatures will
be even
greater than that of developed countries. Further, the increasing use of
internet
technology in electronic transactions raises the issue of the legality of these
transactions.

OMAN: Adoption and Use of Internet Banking in the Sultanate of Oman: An
Exploratory
Study
(Imtiyaz Al-Sabbagh and Alemayehu Molla)
http://www.arraydev.com/commerce/jibc/0406-07.asp

The aim of this paper is to explore the drivers and inhibitors of customers'
Internet
banking adoption in the Sultanate of Oman. Data from 225 respondents were used
to
address the aim. Our preliminary findings indicate that, in Oman, only two banks
offer
Internet banking services to customers. The main drivers of adoption appear to
be
compatibility, usefulness and ease of use. The extent of use is affected by lack
of
government support, poor quality of connection and page loading speed. Trust and
face-
to-face personal banking preference have been found as major inhibitors of IB
adoption.
Some preliminary implications for practitioners are highlighted.

INDIA: Adoption of Internet Banking: An Empirical Investigation of the Indian
Banking
Sector
(By Balwinder Singh and Pooja Malhotra)
http://www.arraydev.com/commerce/jibc/0406-08.asp

The tremendous advances in technology and the aggressive infusion of information
technology had brought in a paradigm shift in banking operations. Internet
banking that
has revolutionized the banking industry worldwide has turned out to be the
nucleus issue
of various studies all over the world. However there has constantly been a
literature gap
on the issue in India. The purpose of this paper is to help fill significant
gaps in knowledge
about the Internet banking landscape in India.

NETHERLANDS: The Customer Relations Government: The Quality of Electronic
Municipal
Services in the Netherlands
(By M Wissinkand A. J. G. M. van Montfort)
http://www.arraydev.com/commerce/jibc/0406-09.asp

Municipalities in the Netherlands and all other industrialized countries are
expected to
increase their adeptness and efficiency on the digital highway. It is expected
that there will
be a continual increase in the level of digital services provided by
municipalities for
members of the public and businesses. However, will the municipalities live up
to the high
expectations?

INDIA: Maneuvering Best Business Practices to Improve the Quality of
E-Governance
Services
(By Kapil Mohan Garg, Nikhil Agarwal, and Arun Mohan Sherry)
http://www.arraydev.com/commerce/jibc/0406-10.asp

The essence of E-Governance, as the new evolving form of governance, is clearly
evident
with the emergence of pro-active knowledge societies. The Governments will have
no
choice to constantly improvise to bring in greater efficiency, accountability
and
transparency in their functioning. The truth rests on the pragmatic ground that
web
services are slower and complicated wheel of distributed infrastructure laced by
low
bandwidth which is the most serious impediment to scalability of web based
services. The
study of this paper focuses on to imply the best business practices to improve
the quality
of web based value added services.

========================
Book Review:
========================

CANADA: "Sales Force Management in the Financial Services"
(By Paul S. Bates)
Reviewed by Nahum Goldmann
http://www.arraydev.com/commerce/jibc/0406-05.asp

This is one of the most interesting and intelligent books that I have read on
the subject of
marketing/sales in quite some time. This small book with the clear practical
focus is
packed with surprisingly thoughtful and insightful text and action templates. It
is
especially welcomed in the subject area that can't boast that many texts raised
above the
pep talk of shallow motivational variety. Well-structured organization of sales
is indeed
critical for functioning of any modern enterprise, especially the ones that
deals with the
financial services.

Paul K. Bates is currently Dean and Industry Professor in Financial Management
Services at
the DeGroote School of Business at McMaster University in Hamilton, Ontario. An
experienced entrepreneur and ex-President of Charles Schwab Canada, he was
recognized
by Investment Executive Magazine in 2000 as Canada's most influential broker of
the year.
Bates also hosted Canada's Money Show, a nationwide call-in radio program.

This book mainly focuses on the organization of consistent execution of
financial services,
as the author's research shows that many great companies failed mainly due to
the
inconsistency of execution rather than the lack of great strategic plans. As
well, the
concept of selling through building personal relationships is critical. Still,
by far the most
important book's statement is that for financial service companies to compete in
the
emerging re-regulated marketplace, the sales culture must be embraced.

A somewhat unexpected focus of this book is on treating a branch of the
financial
institution as a standalone business unit, indeed a franchise. In contrast, many
marketing
books are directed towards the change in the corporate headquarters, often
implying that
the branch's own sales potential is limited or even nonexistent. Bates confronts
this
challenge by showing how to assess the opportunities in the branch's trading
area and
than to focus the team's effort on the conversion of those opportunities into
sales results,
one practical step at the time. In the financial institutions, profitability can
be increased by
building the clients' base and than cross-selling it to get the maximum profits.

Bates does not have many illusions in regards to the proactive sales culture,
which is
somewhat foreign to the conventional financial institutions where cross-selling
and
relationship marketing have almost never been done in the past. His ideas on
providing
right level of service to the clients, focusing on strategic objectives,
managing the
assigned activities and monitoring accountabilities are perhaps not that new.
However, the
set of processes and simple but effective business tools described in this book
might be of
great help to all financial service and sales managers who aim to radically
improve
profitability and business survival of their business units or financial
corporations.

My only disappointment with this book comes from the fact that the analysis and
tools
that it provides are mainly covering the end of the old "brick-and-mortar
branch" banking
paradigm. Important as it is, today's and tomorrow's financial institutions have
to find
equally effective sales methods in the brand new world of transactional global
services
where relationship-based communication is paradoxically far more challenging and
where
standalone business units are no longer relevant.

The challenge of building the clients' base through relationship marketing and
of cross-
selling personal relationships has to be resolved anew in the Internet world. As
well, we
need novel and far more effective ways to support relationship sales culture
using modern
CRM tools. It's hardly a secret that up till now CRM has largely been
unsuccessful in
radically improving profitability of financial services. Hopefully future books
on this
subject will be able to address these issues based on the practical experience
accumulated
to date.

Journal of Internet Banking and Commerce
Vol.9, No 1, February-March 2004

====================
TABLE OF CONTENTS
====================

Editorial (Gordon Jenkins)
http://www.arraydev.com/commerce/jibc/0402-Edit.htm

From our contributing editors:

Problems and Prospects of Internet Marketing
(By Mohammed Talha, Deepak Shrivastva, Pooja Kabra, and Abdullah Sallehuddin
Abdullah
Salim)
http://www.arraydev.com/commerce/jibc/0402-02.htm

UNITED KINGDOM: WiFi Isn't a Market: It's Two
(By Dave Birch)
http://www.arraydev.com/commerce/jibc/0402-07.htm

FRANCE: Why does SSL Dominate the E-payment Market?
(By J.M. Sahut and M. Galuszewska)
http://www.arraydev.com/commerce/jibc/0402-08.htm

FINLAND: The Different Dimensions of Seamless Use Experience in Electronic
Environment
(By Anssi Mattila)
http://www.arraydev.com/commerce/jibc/0402-09.htm

Feature articles:

TAIWAN: Web Site Usability Evaluation of Internet Banking in Taiwan
(By Chin-San Wu, Fei-Fei Cheng, and Hsin-Hui Lin)
http://www.arraydev.com/commerce/jibc/0402-01.htm

AUSTRALIA: Overcoming the Tyranny of "Richness" and "Reach"
(By Joshua Chang)
http://www.arraydev.com/commerce/jibc/0402-03.htm

AUSTRALIA: Web-based Shopping: The Evolution and the Global Implications: An
Exploratory Analysis from a Consumer Behavioural Viewpoint
(By Rajeev Kamineni)
http://www.arraydev.com/commerce/jibc/0403-01.htm

NETHERLANDS: A Suitable Research Methodology for analyzing Online Baking
Behaviour
(By Geoffrey J. L. van Meer, and W. Fred van Raaij)
http://www.arraydev.com/commerce/jibc/0402-04.htm

INDIA: Preventing Technology Based Bank Frauds
(By V. Radha and Ved P. Gulati)
http://www.arraydev.com/commerce/jibc/0402-05.htm

INDIA: Strategic Framework for Marketing of Telecom Services with Specific
Reference to IP
Telephony in India
(By Aditya Krishna Nanda, Deepali Singh, and D. P. Agrawal
http://www.arraydev.com/commerce/jibc/0402-06.htm

====================
EDITORIAL
====================

By Gord Jenkins
Editor-in-Chief
http://www.arraydev.com/commerce/jibc/0402-Edit.htm

	 Welcome to another edition of JIBC, now in our 8th year.

	 Volume number 1 was about this time in 1996. One of our original columnists
David
Birch is still with us! We have added more columnists - and one thing I have
noticed - they
are not just from America and central Europe. If you notice in Volume 8, we have
had
contributors of quality from the Middle East and Asia Pacific on Commerce and
Banking. I
hope to add from Central and South America/Africa to future editions. Articles
are
solicited from these areas please. This is a sure trend of Internet
globalization of banking
and commerce.

	 The Journal is called and will remain the Journal of Internet Banking and
Commerce.
The second trend is that commerce and banking are no longer in a neat category
or
compartments all on their own. The walls are not down nor only between these
disciplines
but just about every other one you can name. Personal banking in retail chains
such as
grocery stores involves the retail sector trends. Phone and cellular banking
involves the
security and communication sector of expertise. Another sure trend is the
convergence of
Internet banking and commerce in all sectors. And this includes government
sector as
well. We hope to receive articles on electronic government as well - pass the
word!

  So we will remain the Journal of Internet Banking and Commerce - but we will
keep be
quietly changing with the times and be putting more emphasis on the Journal of
the
Internet - do you agree? Please let me know what you think.

========================
REGULAR CONTRIBUTORS
========================

MALAYSIA: Problems and Prospects of Internet Marketing
(By Mohammed Talha, Deepak Shrivastva, Pooja Kabra, and Abdullah Sallehuddin
Abdullah
Salim)
http://www.arraydev.com/commerce/jibc/0402-02.htm

	 Though the Internet provides a new means for conducting business, the
fundamentals of doing business remain unchanged. The present study is designed
to
examine the marketing strategy on Internet. For this purpose, it says that by
integrating
the Internet technology into the marketing strategy, business firms will be able
to use the
Internet as a tool to gain competitive advantage.

This article explains Internet marketing mix, which consists five Ps: product,
price,
promotion, place and personalization. The concept of marketing has not changed
in
essential has a result of using the Internet as a new marketing channel but
Internet offers
an unlimited opportunity for business. Internet marketing goes beyond banner
advertising
and e-mail marketing. It includes all the activity aimed at creating a distinct
niche for the
business like segmentation, differentiation etc.

UNITED KINGDOM: WiFi Isn't a Market: It's Two
(By Dave Birch)
http://www.arraydev.com/commerce/jibc/0402-07.htm

The world of wireless Internet access (WiFi for short) has been evolving. Not
only are more
and more homes and offices sprouting wireless Ethernet connections, they are in
an
increasing number of public locations. There are already more than 1,000
so-called hot
spots in Europe and this number could grow to more than 32,000 by 2007. How
anyone is
going to make a living out of this is up for grabs, but there are three basic
options
available to potential service providers

FRANCE: Why does SSL Dominate the E-payment Market?
(By J.M. Sahut and M. Galuszewska)
http://www.arraydev.com/commerce/jibc/0402-08.htm

Since the mid-90s, when e-payments were a major part of the Internet hype, a
plethora of
innovative e-payment solutions have emerged. Although insufficient security has
been
always considered the greatest barrier to conquering the market, reinforced
security does
not seem to have been strongly correlated with a market acceptance rate.

Surprisingly, most security-focused systems have ended up being abandoned. The
winner
of the competitive battle is far from being secure. SSL (Secure Socket Layer),
that has
dominated the market of e-payments, is a communication protocol (not a payment
protocol) and can be criticized for its imperfection as far as international
payments and
buyer identification are concerned. Faced with these facts, providers of
e-payment
solutions realized that they had not grasped the real needs of users.

The crucial goal of this article is to reveal the real reasons for the SSL
success. We will also
analyze other e-payment solutions as well as the market of mobile payments.
Finally, we
will examine the repercussions of electronic payments for the banking system.

FINLAND: The Different Dimensions of Seamless Use Experience in Electronic
Environment
(By Anssi Mattila)
http://www.arraydev.com/commerce/jibc/0402-09.htm

The purpose of this paper is to demonstrate the relationship and dependencies
between
different dimensions of the seamless use experience in an electronic
environment. This
paper outlines the factors affecting the seamless use experience in both mobile
and fixed-
line Internet services from the customer's perspective.

The customer's perception of seamless use is mainly a result of the experienced
interaction in the customer-technology interface. However, our results show that
the
seamless use experience is defined by many more variables such as satisfaction
towards
the service provider and customer's previous use experience. The results are
based on a
large consumer survey conducted among mobile and fixed-line Internet users in
Finland
during summer 2003.

====================
FEATURE ARTICLES
====================

TAIWAN: Web Site Usability Evaluation of Internet Banking in Taiwan
(By Chin-San Wu, Fei-Fei Cheng, and Hsin-Hui Lin)
http://www.arraydev.com/commerce/jibc/0402-01.htm

With the proliferation of the Internet, banks are adopting technologies to build
their own
Web sites. The design of the Web site is a crucial determinant of whether
visitors are likely
to return to the site. The purpose of this study is to investigate the usability
of Internet
banking Web sites in Taiwan.

AUSTRALIA: Overcoming the Tyranny of "Richness" and "Reach"
(By Joshua Chang)
http://www.arraydev.com/commerce/jibc/0402-03.htm

Traditional shopping limits the number of shops the shopper is able to visit due
to time
and other cost constraints; the time spent travelling consequently leaves the
shopper with
less time to evaluate the product.

This paper aims to provide an understanding of how the Internet diminishes the
tyranny of
the trade-off between information richness and the reach of alternative shops
inherent in
traditional shopping, as well as how it enables businesses to be more
competitive.

AUSTRALIA: Web-based Shopping: The Evolution and the Global Implications: An
Exploratory Analysis from a Consumer Behavioural Viewpoint
(By Rajeev Kamineni)
http://www.arraydev.com/commerce/jibc/0403-01.htm

The World Wide Web can change human behaviour and human interactions to a very
large
extent. Web based shopping behaviour is one major example to point out the
trends in
this direction.

This study is of a very exploratory nature and it intends to establish the
differences
between several web-based shoppers from different parts of the world. Several
critical
factors associated with online shopping behaviour will be explored. A
cross-cultural data
set will be collected and an illustrative description of the shoppers will be
provided. As a
final step the cross cultural differences between several shoppers will be
explored. One
question that will run as a theme through out the course of this paper is: Will
the
traditional consumer behaviour theory and research be altered by the advent of
web-
based shopping?

NETHERLANDS: A Suitable Research Methodology for analyzing Online Baking
Behaviour
(By Geoffrey J. L. van Meer, and W. Fred van Raaij)
http://www.arraydev.com/commerce/jibc/0402-04.htm

Banks and financial institutions still perceive the Internet as a "black box" in
which little
insight is provided about individual-level online behaviour. In this article,
examples are
presented that show that click stream analysis is a suitable research
methodology for
integrating the Internet in the marketing strategy of a bank or financial
institution.

INDIA: Preventing Technology Based Bank Frauds
(By V. Radha and Ved P. Gulati)
http://www.arraydev.com/commerce/jibc/0402-05.htm

New technology always brought some more fraudulent criminal activities developed
around these technologies. By the time the regulatory bodies and law enforcement
agencies take preventive measures to cope up with the present environment,
either the
environment itself changes or some new technology emerges making the criminals
find a
new home and commit fraud.

In this paper we discuss the technology-based opportunities that thieves take
advantage
and its prevention and how to build future technology based banking services
that can
limit the frauds.

INDIA: Strategic Framework for Marketing of Telecom Services with Specific
Reference to IP
Telephony in India
(By Aditya Krishna Nanda, Deepali Singh, and D. P. Agrawal
http://www.arraydev.com/commerce/jibc/0402-06.htm

In the cellular sector alone, the subscriber base has increased nearly 10 times
over the
past three years while the tariff has been reduced by nearly 90 percent over the
same
period. Similarly, tariffs have come down in long distance international and
national
telephony by about 40 to 60 percent. Internet telephony is offered even at
cheaper rates.

This framework, which has been specifically designed for the IP Telephony market
in India,
keeps in mind the dynamics and the environment of the telecommunication sector
of the
country, would be the basis of the further work (strategy formulation) by
telecommunication partners.

====================
ADMINISTRATIVE NOTICE
====================

Journal of Internet Banking and Commerce

JIBC (http://www.arraydev.com/commerce/jibc/) is a leading-edge publication that
informs banking and electronic commerce professional and executives on principal
developments, benchmark practices, and future trends in the Internet-based
marketing
practices of government and industry. This Internet oldest free online
interactive journal
supported by ARRAY Development of Ottawa, Canada, is a way to keep in touch, to
share
information, and to establish business contacts (networking) for worldwide
professionals
that specialize in electronic commerce and banking solutions.

Please consider submitting original articles to JIBC Editor-in-Chief Gord
Jenkins. Feel free
to email this publication to your colleagues and students from around the globe
and
encourage them to subscribe as well.

Journal of Internet Banking and Commerce
Vol. 9, No. 1, November 2003

------------------------------------
EDITORIAL
------------------------------------

By Gord Jenkins
Editor-in-Chief
http://www.arraydev.com/commerce/JIBC/0311-Edit.htm

	 It might seem unusual that an editor of a journal about  Internet
and banking
would have - as the Australians say - a  good winge about spam.
However, I believe it
is not security or authentication or privacy that is the biggest
threat to Internet
banking and commerce - it is spam. Spam is in your  mailbox right now
- more than
likely the first thing you do on your business day is clear out the
spam mail that
ingeniously found its way into the sanctity of your mailbox.

	 There are a number of aspects to this insidious invasion.

	 First we all ignored it - spam was a nuisance that had to be put up
with. Some of
those Nigerian spam mails were at first quite funny! Then they
started to slow down
not just you as a nuisance - but also your ISP. And for that matter
the whole Internet
infrastructure.

	 Next we found we could not buy software to effectively defend us
against spam.
We were defenseless.

	 Then we found our ISPs did not give a damn - every time I complained
to my
large phone utility ISP about it, I was logged "as a service call".
Only reluctantly have
ISPs put in anti-spam software for their clients, and than it is not
that effective.

	 Then, in an ironic twist, the legitimate users - such as the email
edition of this
journal, were marked as spam by an "outsourced anti-spam enforcer" of
another
large phone utility which boasts the zero tolerance policy but does
little to cut the
real spam

	 U.S. government departments and soon other governments and
businesses and
- yes even the pillars of banking - such as SWIFT and Identrus will
be not receiving
spam -of course not - but will be feeling the effects of this
Internet infection.

	 In short, spam is the AIDS of the Internet - overlooked - denied by
some as "not
a problem" but just as serious and insidious as AIDS. Spam is the
killer application -
killer of Internet banking and killer of Internet commerce. Maybe as
Editor I should
suggest we change "Journal of Internet Banking and Commerce" to
"Journal of Spam"
- at least I would not have to worry about "distribution numbers".


-----------------------------------------------
REGULAR CONTRIBUTORS
-----------------------------------------------

MALAYSIA: Evaluation of Internet Banking Sites in Islamic Countries
(by Balachandher Krishnan Guru, Bala Shanmugam, Nafis Alam, and
Corrine. J. Perera)
http://www.arraydev.com/commerce/JIBC/0311-01.htm

	 Banks worldwide are now moving rapidly to an era of technological
change.
Customers are exposed to various options available in  the internet
banking web sites
such as online banking, transfer funds, creation of new banking
products and etc.
While many banks, especially in Europe and the U.S., have adopted
internet banking,
this study shows that the majority of Islamic countries are still in
the early stages of
developing internet banking. Only some Islamic banks in the Middle
East have well-
developed internet banking web sites for the convenience of their
customers.
However, since they are still in the infancy stage, there is still
room for improvement.

UNITED KINGDOM: Virtual Law - Will virtual identity converge or
diverge?
(by Dave Birch)
http://www.arraydev.com/commerce/JIBC/0311-05.htm

	 Some of the differences (conflicts, even) between real and virtual
identity are
thrown into sharp relief in the world of online games, where vast
virtual worlds are
already inhabited by millions of virtual characters. While they might
be only games,
they may contain some real insights into the future relationship
between real and
virtual identities.

FINLAND: Cell Sailors - An Educational Program Aimed at Mature
Customers on How
to Use Mobil Services
(by Minna Mattila and Anja Harkonen)
http://www.arraydev.com/commerce/JIBC/0311-08.htm

	 This paper focuses on describing a mature consumer education program
as a
marketing tool. Also, mature customers' mobile service usage is
discussed. Although
mature market is very heterogeneous, the desire for information and
education is a
common characteristic for it. By targeting consumer education
programs to mature
consumers, marketers can help in satisfying this desire. The data of
this paper was
gathered in Finland during spring 2003 by using non-participatory
observation as a
research method. 

FRANCE: Enhance Internet Banking Service Quality with Quality
Function Deployment
Approach
(by Jean-Michel Sahut)
http://www.arraydev.com/commerce/JIBC/0311-09.htm

	 Internet banking providers tend to introduce to consumers as many
services as
possible very often without knowing what the customers really want
and expect from
them. Within the traditional banking environment it was almost
impossible to monitor
and record data on second-by-second actions and interactions with the
customers.

	 The fact is that the electronic environment allows Internet banking
providers to
capture enormous amount of information about customer behaviour
during the whole
process of service consumption and to collect their opinions and
requirements in
different forms.

	 Quality function deployment (QFD) is a distinguished product and
service design
technique primary oriented to deliver "voice of the customer"
throughout every single
planning and design activity. Taking into account the trends of
moving the banking
products and services online, this paper demonstrates the application
of QFD to
Internet banking and it outlines the links among service quality
management, its
concepts, and tools and Internet banking services.

------------------------------------------------
FEATURE ARTICLES
-------------------------------------------------

USA: XML: Future of E-Content Business: The Impact of XML on
Entertainment and
Media
(by Xiaorui Hu and Yuhong Wu))
http://www.arraydev.com/commerce/JIBC/0311-03.htm

	 Electronic commerce (e-commerce) has grown dramatically in the past
decades
due to the rapid development of Internet technology. Entertainment
e-commerce has
been at the vanguard of the online retail revolution. However,
entertainment e-
commerce has experienced rapid change over the past years. In order
to be
successful in the business, entertainment companies are constantly
seeking efficient
mechanisms to attract customers and to provide individualized
services.

	 In this paper, we identify the XML (Extensible Markup Language), a
new type of
data structure standard on the Internet, as part of the backbone for
future e-content
business. XML offers solutions to the success of the e-content
business and provides
support for entertainment e-commerce. The benefits of XMLs features
on the e-
content business are identified and investigated in detail, and the
challenges posted
by the transition to XML are discussed.

USA: Some Free, Some Fee: The Emerging Business Model for e-Content
Sites
(by Meg Murray and Ravi Narayanswamy)
http://www.arraydev.com/commerce/JIBC/0311-04.htm

	 The rapid emergence of E-commerce with its competitive
characteristics has
transformed the business landscape. In its short life span of little
more than a
decade, the Internet marketplace has already seen a dramatic cycle of
high peaks and
low valleys. E-content sites, whose primary product is information,
have had the most
difficulty sustaining profitability.

	 There is a definite trend occurring away from the totally free
content site to the
hybrid model of charging for some e-content fittingly termed the some
free - some
fee model. The some free -  some fee model is one approach that will
enable online
e-content businesses to create revenue while still offering free
content to which many
Web users have become accustomed. Understanding the underlying
principles of, and
the movement towards, the some free - some fee model will assist
e-content
organizations in the transformation of their business model to ensure
their
survivability in the volatile Internet marketplace.

MALAYSIA: The Role of e-Commerce in the 21st Century
(by Mohammed Tahla and Abdullah Sallehhuddin Abdullah Salim)
http://www.arraydev.com/commerce/JIBC/0311-06.htm

	 Technological breakthrough in such areas as fax machines, telephone,
video
player, audio devices and televisions took many years to
commercialize and measure
their impacts on business. Compared to these breakthroughs,
telecommunications,
information communication technology, miniaturization, computers and
Internet went
through shorter product life styles and achieved widespread diffusion
and reformed
the nature of business operation and enhanced competitive business
environment
instantly. This technological advancement has resulted in evolution
and innovation of
many products, services and business processes. One of them is the
emergence of e-
commerce or electronic commerce.

	 The explanatory and conceptual paper presents the ways in which
e-commerce
give information to the consumers. It further highlights some
critical issues in e-
commerce, suggestion and future strategies for e-commerce in years to
come.

AUSTRALIA: Online Shopping: Advantages Over The Offline Alternative
(by Joshua Chang)
http://www.arraydev.com/commerce/JIBC/0311-07.htm

	 The advent of the Internet as a shopping medium has enabled shoppers
to gain
shopping benefits such as convenience and time-saving, better
information, and
price savings. This paper aims to provide a better understanding of
the benefits of
Internet shopping by identifying and discussing the advantages of
Internet shopping
over traditional storefront shopping.

USA: The Emergence of Interdependent e-Commerce Constructs
(by Abel Stephen)
http://www.arraydev.com/commerce/JIBC/0311-10.htm

	 This paper represents the findings of research studies that  address
e-
commerce design and associated consumer behavior. The innovation of
e-commerce
has affected not only the marketplace through the facilitation of the
exchange of
goods and services, but also human behavior in response to the
mechanisms of
online services.

	 Researchers have identified and hypothesized on relevant subject
matters
ranging from Web usability, marketing  channels and other factors
influencing online
buying behavior. Though researchers have focused on what appear
different aspects
of online buying behavior, their studies may be shown to be
interrelated and
interdependent, even to the extent of revealing constructs upon which
e-commerce,
in terms of future design and research, could be built.

USA: Why Big Banks Must Deal in this New Name-Economy
(by Naseem Javed)
http://www.arraydev.com/commerce/JIBC/0311-11.htm

	 Only yesterday, the image of a bank was of a Roman arch, huge
columns, and
people working behind bars. Today, the banks and financial
institutions are in your
pockets, humming palm-pilots, buzzing laptops all working quietly
and completing
complex transactions round the clock.

	 Banks were the first to discover globalization and true e-commerce,
way before
these words even came into our daily lingo. Today, they are not
only caught in a
highly competitive inter-global marketplace but also are stuck with a
lot of old-
fashioned twisted names and ancient iconography.


====================
Administrative Notice
====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and
electronic commerce
professionals and executives on principal developments, benchmark
practices, and
future trends in the Internet-based marketing practices of
governments and industry.
This free online interactive journal is a way to keep in touch, to
share information,
and to establish business contacts (networking) for worldwide
professionals that
specialize in electronic commerce and banking solutions.

Journal of Internet Banking and Commerce
Vol. 8, No. 1, June 2003

--------------------------------
EDITORIAL
--------------------------------
By Gord Jenkins - Editor-in-Chief)
http://www.arraydev.com/commerce/jibc/0306-Edit.htm

	 As some of you will remember, I was the original Editor who along
with Nahum
Goldman the Publisher decided on the need for a quality Journal on
Internet Banking
and Commerce in December 1995 while chatting on an EDI chat group.
The rest is
history! - the Journal was started in Jan 1996 and is still going
strong.

	 I left in Nov. 1998 and moved to Sweden then Australia / Hong Kong /
Singapore then India. But that, as they say, is another story! I
tried to keep editing
JIBC from Sweden but it became increasingly difficult the more I
moved around. But I
am back for good - after September 11; my travels in future will be
virtual.

	 I look forward to getting back in the reins as the Editor and plan
to make some
changes I hope you will all like.

	 First of all I plan, with our illustrious publisher - and old friend
- Nahum's help,
to roll all the other Journals (Journal of Internet Marketing (JIM)
Journal of Internet
Purchasing (JIP) and Journal of Internet Security (JISec) that spun
out under the Array
JIBC umbrella under one: the JIBC. The main reason of course is the
convergence in
the last few years of the subject areas.

	 Secondly the Journals focus will be forward visionary - historical
articles of what
happened will only be accepted in the context of extrapolating to the
future. We will
leave the history to publications such as Harvard Business Review.

	 Thirdly academic articles will be solicited and encouraged - but the
JIBC will be
the home to authors from the public and private sector. The JIBC will
continue to be
the meeting ground between intellectual academia and the practicing
business world.

	  Finally I plan on making the Journal more interactive, consultative
and reader
engagement and involvement. Nice words and I am not quite certain yet
how I will do
this! Letters to the Editors, forums

	 And new forms of consultation and engagement - we plan to be leaders
in this
new thing called "electronic democracy"

	 I promise you I will try to keep the good reputation of JIBC and to
put my efforts
in improving this excellent publication. I would love to hear from
you at
jenkins@...

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--------------------------------------------------------
REGULAR CONTRIBUTORS
--------------------------------------------------------

UNITED KINGDOM: Contactless Crazy
(by David Birch, Director, Consult Hyperion)
http://www.arraydev.com/commerce/JIBC/0306-07.htm

There seems to be a tremendous amount of activity in the field of
contactless smart
cards, especially in the payments arena. What's the excitement about,
and why is it
happening now?


NORDIC: Factors Affecting The Adoption Of Mobile Banking Services
(By Minna Mattila)
http://www.arraydev.com/commerce/jibc/0306-04.htm

This paper focuses on defining the factors influencing mobile banking
adoption and
aims at forming a model describing consumer behavior patterns. Thus
it also
evaluates the applicability of Rogers' (1995) model in this context.
In consequence we
are able to state what are the drivers and inhibitors of using
banking services via
wireless delivery channel. A quantitative survey sheds more light on
this researched
issue. The data was collected in Finland during May-July 2002 and
includes 1253
survey responses.


NETHERLANDS: Never underestimate the importance of local culture
(By Graham Rhind)
http://www.arraydev.com/commerce/jibc/0306-08.htm

	 The world is rich in cultural differences, so that localizing a web
site involves
more than just changing the language.  In this article, Graham Rhind
looks at the
global advertising of one bank and checks to see whether its claims
have been put
into practice as regards to its web data collection forms.


MALAYSIA: Service Quality Evaluation of Internet Banking in Malaysia
(By P. Vijayan and Bala Shanmugam)
www.arraydev.com/commerce/JIBC/0306-06.htm

	 This study evaluates the service quality of Internet banking in
Malaysia. It
focuses on the transaction sites of five leading anchor banks, which
provide a
platform for electronic banking and examines electronic banking
performances
through a set of 40 questions specifically prepared for this
research. The survey was
conducted in January 2002. Only two of the five banks surveyed
obtained a four-star
rating out of a possible five stars. Three other banks have obtained
three-star
ratings. The implications and future directions of Internet banking
in Malaysia are
discussed.


FRANCE: Online Brokerage in Europe: Actors & Strategies
(By Jean-Michel Sahut)
www.arraydev.com/commerce/JIBC/0306-09.htm

	 The tough game among e-brokers is still going on and is becoming
more and
more ruthless. The challenges they are facing will determine who will
survive and who
will be squeezed out of the market. The money they receive from
shareholders will
not always flow in if they do not prove they are capable of achieving
their break-even
point and that will have an impact on stock prices. Thus, in the race
to attract as
many clients as possible, they should stop to rethink their strategy.

	 The purpose of this article is to give a few references on the
subject of on-line
brokerage in order to understand the financial players'
strategies on the Internet. We
explain the challenges and the brokerage value chain and analyses the
problem of the
break-even point.

--------------------------------------------------------
FEATURE ARTICLES
--------------------------------------------------------

INDIA: E-banking for Comprehensive E-democracy: An Indian Discernment
(By Nikhil Agarwal, Ruchi Agarwal, Prasoon Sharma, and A.M. Sherry)
www.arraydev.com/commerce/JIBC/0306-05.htm

	 Banking and finance is like oxygen to any democracy. Successful
democracy can
only be achieved by giving citizens effective, efficient, and
resourceful money
management systems (MMS). Internet banking has come a long way since
the world's
first Internet bank started offering services over the net in 1995.
At present, most of
the banks around the world have a web presence in the form of ATMs,
Internet
banking, support services, etc.

	 The aim of this paper is to prepare a background for discussion for
e-banking
and e-democracy. This paper will look for such avenues where banking
can play a
significant role in e-democracy


DUBAI: Internet Banking in Emergency Markets: The Case of Jordan
(By Raed Awamleh, John Evans, and Ashraf Mahate)
www.arraydev.com/commerce/JIBC/0306-03.htm

	 In focusing upon Jordan as a case study of an emerging market, this
article
takes a closer look at the gap between the popularity of Internet
banking in Jordan to
that in the United States. While American banks have reached a stage
where a number
of banks are operating entirely via web without any need for physical
location,
Jordanian banks have a very limited web presence. Both American and
Jordanian
banking industries do, however, exhibit weaknesses in the advanced
levels of all web
opportunities, particularly with regards to customer relationships.


GREECE: Consumer Exclusion and Social Responsibility in MArketing
Decisions
(By George G. Panigyrakis, Prokopis K. Theodoridis and Irini D.
Rigopoulou)
www.arraydev.com/commerce/JIBC/0306-02.htm

	 Half of the European population still lives outside major urban
areas. However,
the quality of life and employment opportunities in the remote areas
of Europe are
under threat. The social role of companies is manifested by the
improvement of the
living standards. In some cases, the lack of the provision of
financial services
becomes unjustified, having in mind the opportunities provided by
information
technology. Companies have to be "re-positioned" in order to
create a profile, in tune
with the needs of regional and local communities and in line with
their well-being
evolution. It seems necessary that a re-thinking of marketing
concepts such as
segmentation and targeting take place, in order to present a more
socially
responsible strategic view.


USA: Big Deal Identity Theft
(By Martin Nemzow)
www.arraydev.com/commerce/JIBC/0211-Edit.htm

	 Identity theft is the fastest growing crime in the United States;
it is also the
fastest growing crime in some other industrialized nations. Although
the effects of
this crime inconvenience the individual  attacked but really cost the
indemnifying
credit card processors,  the nature of this crime will change the
business and banking
landscape in a significant way. The most fundamental effect will  be
the extension of
identity crime against banking and business  organizations. That will
be a big deal.

USA: Gender Difference and e-Commerce Behavior and Perceptions
(By Kurt Schimmel)
www.arraydev.com/commerce/JIBC/0306-01.htm

	 A recent survey of 224 Internet shoppers was conducted, and the
results
indicate there are only slight differences between the genders
regarding on-line
shopping behavior and no difference in actual shopping behavior.

====================
Administrative Notice
====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and
electronic commerce
professionals and executives on principal developments, benchmark
practices, and
future trends in the Internet-based marketing practices of
governments and industry.
This free online interactive journal is a way to keep in touch, to
share information,
and to establish business contacts (networking) for worldwide
professionals that
specialize in electronic commerce and banking solutions.

==============================
Extranet:  The "Third Wave" in the Internet Electronic Commerce
-- http://www.arraydev.com/commerce/jibc/9701-17.htm
=============================
By Nahum Goldmann
Email: Nahum.Goldmann@...
URL: http://www.ARRAYdev.com/

Nahum Goldmann has been employed as a manager, scientist and
lecturer  in leading industrial high tech firms and academia.
Mr. Goldmann has  published several critically acclaimed books
that deal with knowledge  transfer issues.  Presently he leads
the development of Extranet-based  solutions for use in online
procurement and electronic banking and commerce.

**************
...An Extranet, or extended Internet, is a private business
network of several cooperating organizations located outside the
corporate firewall.  An Extranet service uses existing Internet
interactive infrastructure, including standard servers, email
clients and Web browsers.  This makes Extranet far more
economical than the creation and maintenance of a proprietary
network.  It enables trading partners, suppliers and customers
with common interests to form a tight business relationship and a
strong communication bond.

Technical and cost advantages are, of course, very important.
But the real significance of Extranet is that it is the first
non-proprietary technical tool that can support rapid evolution
of electronic commerce.  The real revolution over the next
three to five years will be in systems for global procurement
of goods and services at the wholesale level.  And this is
where Extranet will play a critical role.

In relation to its content and marketing potential, the term
"third wave" also refers to the maturity process in the
development of Web technology. Extranet is conceptualized
as the key technology enabler for the development of the
third wave large-scale electronic commerce sites. Moreover,
this new concept is also at the heart of the reengineering
effort required to advance a traditional corporation into the
state of the "knowledge factory".

The article describes principal elements of a typical
Extranet site and discusses the advantages of using
this technology platform.  It also cites several marketing
studies which track the level of investment required to
implement Extranet sites of different complexities.



===============================
Internet-Based Financial EDI: The Case of Bank of America and
Lawrence Livermore National Laboratory Pilot
================================
By Arie Segev, Jaana Porra, Malu Roldan
Prof. Arie Segev is the Director of the Fisher Center for
Information Technology and Management at the Walter A. Haas
School of Business, University of California Berkeley. Dr. Jaana
Porra and Dr. Malu Roldan serve as Research Fellows at the
center. The Fisher Center for Technology focuses on research in
electronic commerce and the impact of the Internet on business.
*****************
Abstract

Bank of America (BofA) has used Electronic Data Interchange (EDI)
to transmit financial transactions between itself and its
customers for years.

Until recently, however, BofA has used direct private lines or
third party value added networks (VANs) as the carrier of the EDI
data. In 1994, BofA initiated a pilot project with its customer
Lawrence Livermore National Laboratory (LLNL) to investigate
whether the Internet could be used for secure, reliable, and fast
financial EDI (FEDI) transactions. The results of the pilot
project, which ended June 30th, 1996, are presented and possible
implications are discussed.  The results suggest that the
Internet is a viable alternative carrier for critical or
sensitive business transactions.

(EXTRACT from article)
...Before the FEDI pilot, BofA used two primary channels
private networks and VANs -- to transmit FEDI and other EDI
transactions between itself and its customers. The Internet
presents a seemingly attractive alternative for both of them.  It
is widely available and reputably inexpensive when compared to
VANs.  Since the bank already has an Internet connection for
other applications, e.g. electronic mail, the incremental cost
required to carry EDI traffic over the Internet is minimal.  The
bank views the flat-fee, volume-independent and time-of-day
independent pricing structure of the Internet as one major
benefit over other types of networks, like VANs.

Because of the large volume of transactions, the bank expects to
achieve tangible savings, over the long term, by either
redirecting EDI traffic from other channels, generating new
customers from current Internet users, or both. ...

The full report can be found at the Fisher Center for Technology:
http://haas.berkeley.edu/~citm/EDI-proj.html

A longer summary of the report is published in EDI Forum: The
Journal of Electronic Commerce at
http://www.premenos.com/t.edigroup/



=======================
The Unisys Internet Banking Site: A European Perspective
--http://www.arraydev.com/commerce/jibc/9701-19.htm
=======================
By Michael T. Hennigan
(JIBC invited Mr. Henniganto provide a brief description of a project
  that has important implications for Internet banking.  He will be
providing further insights and analysis as the project proceeds
over the months ahead.)
**************

...Overall the Unisys Internet Banking Site
(http://www.internet-banking.com) is trying to assess the use
that Financial Institutions are making of the Internet.  To do
this have analysed about 30 Web sites. We've started with UK and
Irish Banks, but will shortly expand this to include French and
German sites as well. To facilitate our assessment we've
identified for main categories that the Banks and Building
Societies fall into. The (files on)
http://www.internet-banking.com/barom.html explain the
categories:
1) Net Presence
2) Interactivity
3) Home Banking
4) Internet Banking

...Currently very few banks are taking full advantage of the new
medium by offering banking transactions over the  Internet, but
we predict that this will change soon!

...The other main part of the site focuses on electronic commerce
(http://www.internet-banking.com/ecom.html), mainly from a
technological point of view. A general review of the
situation is given together with a comparison of the different
payment technologies such as Cybercash, Open Market, and
Mondex.


========================
Letters and Comments
========================
Consumer Acceptance of Digital Cash and E-Money
      (By Vincent Albers)
-- http://www.arraydev.com/commerce/jibc/l-97-1.htm

G7 Conference in April
      (By Andy Pieniazek)
-- http://www.arraydev.com/commerce/jibc/1-97-2.htm


4. Administrative Notices

========================================
JOURNAL OF INTERNET BANKING AND COMMERCE
========================================
ISSN 1204-5357

Publisher Nahum Goldmann
ARRAY Development
Ottawa, Canada
Nahum.Goldmann@...
http://www.ARRAYdev.com

Chief Editor: Gordon Jenkins
JENKINS AND ASSOCIATES INC.
Jenkins@...
http://www.gordjenkins.com

Managing Editor: Tom McKegney
Tom.McKegney@...
http://www.ARRAYdev.com

Contributing Editor JIBC Legal: Richard L. Field
field@...

Contributing Editor: Robert Hettinga
rah@...

Contributing Editor -- Australia and Southeast Asia
Mary-Anne Goldsworthy
cec@...
http://www-mugc.cc.monash.edu.au/cec/index.html

Over the Water Columnist: David G.W. Birch
daveb@...

Innovation Editor: John Gehl

Australian Editor: Mary- Anne Goldsworthy

UNCTAD Editor: Carlos Moreira

Eastern Europe: Will Keenan

Southern Europe: Mauro Cipparone

JIBC Postmaster/Webmaster
Phil Beauchamp
ARRAY Development
pbeaucha@...



=================
JIBC ANNOUNCEMENT
=================
The goal of this publication is to inform executives,
professionals,entrepreneurs, government personnel and other key
players on principal developments and trends in the rapidly
evolving electronic commerce area all over the World. This free
online Journal is a way to keep in touch, to share information,
and to establish business contacts in the area of electronic
commerce and banking on the Internet.

The Journal of Internet Banking and Commerce (JIBC) is primarily
devoted to important announcements, refereed original articles,
guest columns, significant feature presentations from other
publications, as well as surveys, reviews, and letters to the
editor. We will try to keep away from technical discussions and
leave them to other specialized lists.  Our Journal will be
issued every two months and will definitely focus on quality, not
quantity. We will be editing, filtering and summarizing, to
provide our busy readers with only substantial information. We
will do this by distributing only abstracts and summaries in the
email portion of the Journal. The complete articles and columns,
as well as background information, will be placed on our Web site
(http://www.arraydev.com/commerce/JIBC/).

Join our Journal and learn about the trends in electronic
commerce.  We promise not to get too "techie." Not too many
fights but lots of good discussion. We need your articles, your
email, your contributions and discussion. Your feedback on
articles should be directed to the Editor, Gordon Jenkins. Direct
general comments about the publication to the Publisher, Nahum
Goldmann. You can email us directly or use the Questionnaire that
we keep on the JIBC Web site.



============================
SPONSORS/ADVERTISERS WELCOME
============================
The support of commercial sponsors and advertisers is also
important.  Please mention JIBC to any firm or organization you
think would be interested in reaching the high level readership
JIBC is attracting.  For information about advertising types and
rates, email to communications@.... Information
is also available on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/private/index.htm



=========
COPYRIGHT
=========
The Journal Of Internet Banking And Commerce is Copyright (C)
1996-97  by ARRAY Development, Ottawa, Canada. All Rights
Reserved.

Copyright of individual articles remains with the original
author.Commercial use or republication requires the author's
permission.  Copying is permitted for noncommercial,
educational use by academic computer centres, individual
scholars, and libraries. This message must appear on all copied
material.



===========
CIRCULATION
===========
JIBC Vol 2 No. 1:


Total number of subscribers to JIBC email version : 1051

  492     : US Commercial (.COM)
   91     : Network (.NET)
   58     : Australia (.AU)
   43     : US Educational (.EDU)
   43     : Canada (.CA)
   37     : United Kingdom (.UK)
   24     : Non-Profit (.ORG)
   24     : Germany (.DE)
   17     : Belgium (.BE)
   15     : US Government (.GOV)
   15     : Italy (.IT)
   14     : France (.FR)
   13     : Netherlands (.NL)
   12     : Japan (.JP)
   11     : Singapore (.SG)
   10     : South Africa (.ZA)
    9     : Taiwan (.TW)
    9     : Switzerland (.CH)
    9     : Sweden (.SE)
    9     : Spain (.ES)
    7     : Austria (.AT)
    6     : Finland (.FI)
    5     : Russian Federation (.RU)
    4     : Norway (.NO)
    4     : New Zealand (.NZ)
    4     : Israel (.IL)
    4     : Brazil (.BR)
    3     : United States (.US)
    3     : US Military (.MIL)
    3     : Soviet Union (.SU)
    3     : Mexico (.MX)
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    3     : India (.IN)
    3     : Hong Kong (.HK)
    3     : Argentina (.AR)
    2     : Ukraine (.UA)
    2     : Slovak Republic (.SK)
    2     : Portugal (.PT)
    2     : Malaysia (.MY)
    2     : Ireland (.IE)
    2     : Iceland (.IS)
    2     : Greece (.GR)
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    1     : United Arab Emirates (.AE)
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    1     : Pakistan (.PK)
    1     : Kuwait (.KW)
    1     : Hungary (.HU)
    1     : Egypt (.EG)
    1     : Denmark (.DK)
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    1     : China (.CN)
    1     : Chile (.CL)
    1     : Bermuda (.BM)
    1     : Barbados (.BB)
    1     : Anguilla (.AI)



End of JIBC Vol. 2, no. 1, January, 1997

Journal of Internet Banking and Commerce

Vol 2 no 2, March 1997 (Part 2 of 2)

Feature Articles (Continued)

====================
  From Cyberbucks to Cyberpunk: Tomorrow's Electronic
Commerce on Today's Mean Streets
http://www.arraydev.com/commerce/jibc/9702-12.htm
====================
By Walter A. Effross
Associate Professor, Washington College of Law, American University
Email: weffross@...
********
[Here are the first few paragraphs of the Web article which in
turn is excerpted from "Piracy, Privacy, and Privatization:
Fictional and Legal Approaches to the Electronic Future of Cash,"
the author's introduction to the American
University Law Review's forthcoming Symposium issue. (See
Conference Ads below for registration information)]

A decade ago the popularity of "feudal life" scenarios in
science fiction and fantasy literature was attributed to the fact
that in such settings "money never has to change hands." In
Trillion Year Spree (1986), Brian Aldiss and David Wingrove
asked,
      [w]hen did a fantasy hero ever fish a ten dollar bill from
      his pocket?  When did milady seek alimony?  When were
      travellers' cheques needed in Atlantis or Cathay?  When was
      the lead villain simply slung into prison for debt?  When
      did the mortgage ever fall due on one of those labyrinthine
      castles? [p.280]

However, even as these questions were posed a new genre
celebrated the cash, criminality, and computerized commerce of a
future that has become today's headlines.  Indeed, "cyberpunk"
denotes more than science fiction that emphasizes the interaction
of people with computers; according to a best-selling non-fiction
work of the same name, it also refers to an individual who, like
the protagonists of these novels, "make[s his] living buying,
selling, and stealing information, the currency of a computerized
future." [Katie Hafner and John Markoff, Cyberpunk: Outlaws and
Hackers on the Computer Frontier 9 (1991)].  In both of these
senses cyberpunk's authors anticipated the challenges posed by
the increasing convergence of the banking, technology, and legal
communities.

If other fictional settings allow novelists to avoid mundane
financial transactions, cyberpunk not only confronts but glories
in the grim and gritty commerce of the street. Indeed, its heroes
can escape their physical and economic reality only by plunging
into "cyberspace," mankind's "consensual hallucination. . . [a]
graphic representation of data abstracted from the banks of every
computer in the human system." [William Gibson, Neuromancer 51
(1984)] It is in this alternate, electronic universe, where
multinational corporations hoard their data and financial
institutions their electronic cash, that cyberpunks practice
their esoteric digital deceptions.

==============
Data Warehousing, Electronic Commerce and Technological Learning:
Successes and Failures from Government and Private Industry and
Lessons Learned for 21st Century Electronic Government
http://www.arraydev.com/commerce/jibc/9702-14.htm
==============

By Elias G. Carayannis, PhD, MBA, BScEE
Program on the Management of Science, Technology and Innovation,
Department of Management Science,
School of Business and Public Management,
The George Washington University, Washington, DC 20052
Email: caraye@...
*************
(Excerpt from concluding section of Web article)

4. Lessons Learned and Recommendations for 21st Century Electronic
Government

The lessons learned for 21st century electronic government based on this
survey of government policies and industry practices in information
technology implementations are that the main challenges on the road to
electronic government are the following:
*Get top agency executives, not just IRM officials involved.
*Strong, consistent direction is needed in CIO appointments.
*Attention needed to building new IT skills, not just leveraging existing
ones.
*Besides government-wide efforts, OMB and agencies must keep focused on
internal implementation steps.
*Continue to emphasize an intergated, not selective management approach.
         Congressional support and oversight is essential.
*Closely monitor the caliber and organizational placement of CIO candidates
for
         departments and agencies.
*Focus on the evaluation of results.
*Monitor how well agencies are institutionalizing processes and regularly
         validating cost, return, and risk data used to support IT investment
         decisions.
*Get the right people asking and answering the right questions.

*   *   *   *   *   *   *   *

  From JIBC Contributing Editors

===================
Over the  Water -- the View from the UK
By David G.W. Birch
http://www.arraydev.com/commerce/jibc/9702-18.htm
===================
(an excerpt from the Web article) ...
The Dog That Didn't Bark

... people are reportedly reluctant to use their credit cards over the Net
because of concerns about security. The principal concern would seem to be
that credit card numbers being intercepted while traversing the highways
and byways of the internet, yet to the best of my knowledge there is no
recorded case of a credit card number being stolen during transmission over
the internet ever. This is not just rare: it has never happened.

The few reported cases of hackers stealing credit card numbers involves
attacks on poorly configured retailer systems (magazine subscription
databases and the like). This is obviously the best way to get credit card
numbers. Why root through the billions of packets flowing around the Net on
the off chance you might find a credit card number when you can go to a
retailers system and find thousands of credit card numbers sorted,
organised and arranged (and with expiration dates and billing addresses).

I've used my credit card number over the Net many many times. In fact, I
did it last week when I emailed my credit card number to a software company
to pay for a CD ROM game I wanted. I wasn't in the least concerned about
hackers: after all, if the credit card number gets stolen, that's the
credit card company's problem, not mine.

Here's the apparent conundrum then: people read reports of ATM fraud all
the time, yet they use their ATM cards all the time. People never read
reports about credit card numbers being stolen over the Net (although they
do read lots of reports about how this might happen), yet credit card
transactions on the Net seem to be held back by fears about security. If
its not concerns about
security, then why so few apparent credit card transactions on the Net? It
seems to me there are two possible explanations, both equally plausible.
Either, credit card use on the Net is underreported, or (more likely)
people don't use their credit cards on the Net because theres no compelling
reason for them to do so.
...

==============
The Consequences of Electronic Delivery Channels
on The Retail Banking Industry
http://www.arraydev.com/commerce/jibc/9702-15.htm
===============
By Mauro Cipparone
Contributing Editor: Southern Europe
Email: mcippa@...
URL: http://www.geocities.com/WallStreet/2486/
***************

    ...What will retail banking be like in 15 years time ? Will banks
operate substantially differently from today ?

Today's banks offer substantially two
different types of services : money handling and a category which I
will call, for now, other services. Money handling comprises all those
services which are currently provided through current accounts :
crediting of one's salary, paying for shopping, paying bills, setting
up standing orders, sending money drafts and wire transfers, cashing
cheques. In brief, paying money and being paid money. 20 years ago the
payment industry was, to a large extent, the crux of banking. The
reason for this was mainly the physical nature of money. People put
gold, and then cash, in a bank because it was (and is) not safe to
simply keep it under the mattress, and because cash is bulky. It is
cheaper and safer to receive one's salary in a bank account than as an
envelope full of cash. It is cheaper to hand out a cheque or make a
wire transfer than to ship a bag of banknotes. Why banks ? Because the
handling of the money itself and of the millions of cheques and other
documents is very expensive, and requires large economies of scale.
However, today paper has been, to a great extent, already eliminated
  from the payment system.

...
As a conclusion, we can say that the retail banking industry will be
significantly affected by the development of new electronic delivery
channels. Changes will be gradual but unavoidable. Banks will manage
to remain the most important financial institutions in the industry
only if they will be quick to adapt to the changes, thus avoiding the
migration of customers to new entrants.

===============
Some Excerpts from "INNOVATION"
http://www.arraydev.com/commerce/jibc/9702-04.htm
===============
  From INNOVATION Editor and JIBC Contributing Editor John Gehl

Topics of the items posted this time include Web Sites for Buyers
(Rather than Sellers), Electronic Signatures with a Personal
Touch, Over the Chasm and Through the Tornado, The Globalization
of Everything, and The Secret Sharer.

==============
Electronic Commerce for Small to Medium Sized Enterprises
http://www.arraydev.com/commerce/jibc/9702-19.htm
==============
  From Contributing Editor Mary-Anne Goldsworthy
(The Web article is the report of a study of electronic commerce needs
of small and medium-sized enterprises in Queensland, Australia.)
...
Recommendations

A number of recommendations are made for the IIB and selected
industry partners designed to assist Queensland SMEs to benefit
  from electronic commerce and understand how electronic
commerce can open up new business opportunities for them
as follows:

*     Determine EC interface standards for application software
*     Establish an accreditation process for electronic commerce
         technology and services to give confidence to that the
         EC products and services were according to predefined
         standards.
*     Encourage EC software development by Queensland firms
*     Facilitate Queensland based WWW services
*     Establish and deliver EC awareness programs
*     Establish Internet training and assistance services
*     Encourage establishment of industry group EC communities
         in Queensland
*     Identify and support individual regional EC initiatives
*     Ensure provision of a single face to Government through
         the provision of a central electronic entry point to
         Government Agencies and Services
*     Establish a Queensland based Internet discussion group
*     Develop an EC information pack for distribution throughout
         Queensland
*     Survey Queensland SMEs by region to gain a detailed understanding of
any specific regional EC issues that need to be addressed.


===================
Hettinga's Best of the Month
http://www.arraydev.com/commerce/jibc/9702-03.htm
===================
Submitted by our Contributing Editor Robert Hettinga as his choice
of best article of month found on Internet.

Email: rah@...
**************
Internet Auctions

>From Fred Hapgood hapgood@...

...The spread of auctions on the internet inspires one to wonder
if it might not be possible to use the net to replace flat
pricing in some sectors without paying with added time and
inconvenience. At the moment net auctions are confined to the
obvious: basically collectibles and resales of the sort that
appear in Want Advertisers. Would it be possible to sell
production items, new cars, hotel rooms, clothing, via auction?
Would both buyers and sellers have incentives to switch over from
fixed pricing?

...

Subject: Re: Auctions
Reply-To: hapgood@... (Fred Hapgood)

The assumption of the original post is that auction pricing is
socially better than flat-rate pricing because the information
you get from auctions is of higher quality. (I also assume that
everyone benefits from a smarter economy in the long run.) The
question was whether the net could in some fashion allow AP to
nibble around the edges of the sectors colonized by FRP,
particularly 'many of a kind' products (as opposed to 'one of a
kind') like cars or refrigerators.

The question is still open, but it's interesting that the auction
sites dealing in overstocks often sell several units of the same
item in parallel auctions (i.e., not as a single lot). One system
is to rank the bids and distribute items down the list until the
stock is exhausted. If there are N items the top N bids win.
There are others.

One benefit to buyers (so far as overstocks go) is the
satisfaction of getting the goods at about 25% of list price,
which means that the system is to some degree parasitic on FRP.
Another benefit is feeling that a price set by bids represents a
truer estimate of value than one set by vendor fiat.  You have
more confidence that you are not being ripped off...

Of course sellers also have to feel they're making out -- they
have to have some reason to think their aggregate return from AP
will be higher than it would have been by setting a flat price.
This is easier to imagine with small lots of a dozen units but I
can sort of dimly imagine distributing an entire production run
this way. Again, the marketing edge is that buyers are more
likely to feel that a high price is legitimate.



====================
The GTPNET Phase II - Moving Contacts to Contracts
http://www.arraydev.com/commerce/jibc/9702-02.htm
====================
By Carlos Moreira
United Nations Conference for Trade and Development (UNCTAD)
Email: cmoreira@...

Carlos Moreira is Head of the United Nations Conference for Trade
and Development (UNCTAD) Trade Point Development Centre (TPDC)
which is hosted by the Royal Melbourne Institute of Technology
(RMIT). UNCTAD-TPDC is cooperating with RMIT to establish the
"Global Trade Point Network" presently in 134 countries. The
research work covers technical feasibility, cost effective
designs, "information highway" requirements and the modus
operandus to support the establishment of electronic information
processing, information infrastructure and electronic commerce
technologies to improve trade efficiency throughout the world.
*************
This report describes the UNTPDC Internet based technologies and
the performances on individual services (Mirror Sites, Incubator,
ETO system, Newsgroups, email switch) which contributed to make
the UNTPDC one of the most visited Trading Site on the Internet.
The UNTPDC Sites run what we believe to be one of the highest
volume web services on the Internet. All UNTPDC servers combined
currently take a total of between four and five million hits per
day (2 to 3 millions for ETO Newsgroups and 1.5 to 2 million for
the Web Sites), and this number continues to grow.

*  *  *  *  *  *  *  *
!!!!!NEW!!!!!!

Case Studies

This new section will welcome "case studies" of products that have been
successfully applied in a real-life situation.  If you or your company
would like to brag a bit or are quite proud of how well your product or
service did, then please send us an article for the "Case Studies" section.

The case study must of course have the approval of the site/product/service
owner and should not be too self-congratulatory.  We'd like you to talk
about what you did right, what you did wrong and lessons learned.

===============
Case Study: Canada Investment and Savings Lays Groundwork
for Online Savings Bond Sales
http://www.arraydev.com/commerce/jibc/9702-09.htm
===============

The CIS Canada Savings Bond Site

In the summer of 1996, Canada Investment and Savings began
planning and development of a Web-based system for distributing
marketing information related to the annual fall Canada Savings Bond
sales campaigns.

The project was supported by the Bank of Canada with Web/Internet and
business development expertise provided by ARRAY Development
of Ottawa.  Graphics were provided by the federal Department of Finance.

The site attracted 130,000 hits during the six-week
campaign and continues to receive about 1,500 hits per month.
Consumer comments have been very positive. A number of customers
submitted purchase applications on forms printed
  from the Web site.

The Web site effectively complemented print and broadcast
advertising and sales support campaign conducted by Canada Investment and
Savings and the Bank of Canada. It offers email access to customer service
and
reassures financial advisors and bond sales personnel that their
information is correct and up-to-date.  Attractions for consumers include a
convenient tool to calculate the value of their bond holdings at any
selected time and a form that simplifies record keeping.

Now that the basic structure and business processes are in place,
the site can be easily adapted to a variety of marketing
activities related to Canada Savings Bonds. In early 1997, for
example, the site was modified to support another successful marketing
campaign for Registered Retirement Savings Plans.



*   *   *   *   *   *   *   *

Conference Advertising

*Purchasing on the Internet
      International Quality and Productivity Center

Drive Costs Out of Your Purchasing Department is the topic of the
May 13 - 15 conference at the Holiday Inn Select in San
Francisco. Attend this conference to learn how to maximize your
electronic purchasing efficiencies through the use of Internet,
Intranet and private networks. Topics to be covered include:
steps to getting on line, integrating EDI and online purchasing,
purchasing card issues, etc. Presenters include professionals
  from American Express, Wells Fargo Bank, Visa International, and
Boise Cascade Office Products Corp.  For information/registration
call 1-800-882-8684, email to info@... or visit the IQPC Web
site at http://www.iqpc.com


Maximize the Benefits of Electronic Commerce is the topic at the
conference planned for the Toronto Colony Square Hotel May 21 to
23. Attend this conference to learn how to maximize your
electronic purchasing efficiencies and drive your total costs
down and visibility up. Topics to be covered include: steps to
getting on line, integrating EDI and online purchasing, securing
banking services, purchasing card issues, etc. Presenters will
include professionals from the Royal Canadian MInt, Cebra Inc.,
IBM Canada Ltd., NASA, McGill University Health Centre (Royal
Victoria Hospital) and GE Information Services. For
information/registration call 1-800-882-8684, email to
info@... or visit the IQPC Web site at http://www.iqpc.com

*****************
Contact communications@... for information about
advertising your conference in JIBC.
*****************


*Symposium on The Electronic Future of Cash, Washington College
of Law, Washington, DC, Friday, April 18, 1997.
      The Washington College of Law and The American University
      Law Review

The first panel, "The Technology of Electronic Cash,"
features Newsweek columnist Steven Levy; CyberCash general
counsel Russ Stevenson; Peter Wayner, author of Digital Cash:
Commerce on the Net; Gary Lorenz, General Manager of Diebold
Systems Campus Division; and a representative (invited) of the
National Security Agency.  The panel will examine the operation
of stored value cards and encryption techniques and will include
a demonstration of a "cyberpayment" made with digital cash.

The second panel, "Commentary on the Regulation of Electronic
Cash," will bring together the authors of articles in the Law
Review's Symposium issue (provided, with additional materials, to
all registrants) to review and recommend regulatory efforts from
the viewpoints of academics, practitioners, bankers, and consumer
advocates.  Panelists include: Professor Mark Budnitz, Georgia
State University College of Law; Richard Field, Chair, Electronic
Commerce Payment Committee, American Bar Association; Professor
Egon Guttman, Washington College of Law; Professor David Oedel,
Mercer University Law School; Simon Lelieveldt, Senior Policy
Advisor, Payment Systems Policy Department, De Nederlandsche Bank
(the Dutch Central Bank); and Brian Smith, of Mayer, Brown &
Platt.

Dr. David Chaum, founder and president of DigiCash, has been
invited to deliver a luncheon address.

The third panel, "The Perspective of the Regulators," features
leading regulators discussing the statutory and regulatory
approaches with which they are involved.  Panelists include:
Thomas Baxter Jr., General Counsel, the Federal Reserve Bank of
New York; William Kroener, General Counsel, FDIC; Michael
Billsma, Acting Director, Community and Consumer Law, Office of
the Comptroller of the Currency; Scott Charney, Chief, Computer
Crime and Intellectual Property Section, Criminal Division,
Department of Justice; Paul Glenn, Special Counsel, Office of
Thrift Supervision; Stephen Kroll, Legal Counsel, Financial
Crimes Enforcement Network (FINCen), United States Treasury
Department; John Lopez, Counsel, Subcommittee on Domestic and
International Monetary Policy; and Lucy Morris, Assistant
Director for Credit Practices, Federal Trade Commission.

For a brochure and registration form, please call
Professor Walter Effross at (202) 274-4017, send e-mail to
futurecash@..., or see our Symposium website at
http://www.wcl.american.edu/pub/journals/lawrev/electronic_cash/conf.htm.



4. Administrative Notices

========================================
JOURNAL OF INTERNET BANKING AND COMMERCE
========================================
ISSN 1204-5357

Publisher Nahum Goldmann
ARRAY Development
Ottawa, Canada
Nahum.Goldmann@...
http://www.ARRAYdev.com

Chief Editor: Gordon Jenkins
JENKINS AND ASSOCIATES INC.
jenkins@...
http://www.gordjenkins.com

Managing Editor: Tom McKegney
Tom.McKegney@...
http://www.ARRAYdev.com


Contributing Editors:

In alphabetical order:
U.K. Editor: David G.W.Birch
      David G.W. Birch is a Director of the UK consulting firm Hyperion,
which he helped to found in 1986. He provides analysis, creation and
facilitation expertise to clients, specialising in the field of electronic
commerce where he is recognised as one of the UK's leading consultants.
Prior to Hyperion, Dave spent several years as a consultant specialising
in communications after having graduated with a degree in Physics. Dave
has lived and worked in Europe, the Far East and North America helping
organisations ranging from SWIFT and AT&T to Mondex and the Indonesian
PTT: he therefore has a broad knowledge base and is able to synthesise
experience from a variety of market sectors.

Southern Europe: Mauro Cipparone
      Mauro Cipparone has recently graduated summa cum laude at LUISS
University, Rome, with a thesis on the economic consequences of Internet
payment systems. He collaborates with the computing center of   LUISS
University, Rome, and with the association "Liber       Liber," occasionally
giving lectures on Internet payment systems.

Legal Editor: Richard Field
      Richard Field is an attorney and legal consultant in Cliffside Park,
New  Jersey, U.S.A. He chairs the Electronic Commerce Payment Committee of
the American Bar Association.

Innovation Editor: John Gehl
     John Gehl produces the weekly electronic newsletter INNOVATION with
partner Suzanne Douglas.

Australian Editor: Mary-Anne Goldsworthy
      Mary-Anne Goldsworthy is Executive Officer of the Centre for
         Electronic Commerce at Monash University, Gippsland Campus,
Churchill,VIC
3842 The CEC is a national independent consulting, training and research
centre for electronic commerce services to assist industry and government,
and specifically SMEs (small to medium  enterprises).

Security Editor: Bob Hettinga
      Robert Hettinga rah@... 44 Farquhar Street, Boston, MA
02131   USA

Eastern Europe: Will Keenan
      Will Keenan is Regional Advisor on Trade Facilitation with the UN
Economic Commission for Europe in Geneva, Switzerland. Any findings,
interpretations and conclusions expressed in JIBC are personal and should
not be attributed to the UN/ECE.

UNCTAD Editor: Carlos Moreira
      Carlos Moreira is Head of the United Nations Conference for Trade and
Development (UNCTAD) Trade Point Development Centre (TPDC) which is hosted
by the Royal Melbourne Institute of Technology (RMIT). UNCTAD-TPDC is
cooperating with RMIT to establish the "Global Trade Point Network"
presently in 134 countries. The research work covers technical
feasibility, cost effective designs, "information highway" requirements
and the modus operandus to support the establishment of electronic
information processing, information infrastructure and  electronic commerce
technologies to improve trade efficiency throughout the world.


JIBC Postmaster/Webmaster
Phil Beauchamp, ARRAY Development
pbeaucha@...

=================
JIBC ANNOUNCEMENT
=================
The goal of this publication is to inform executives,
professionals, entrepreneurs, government personnel and other key
players on principal developments and trends in the rapidly
evolving electronic commerce area all over the World. This free
online Journal is a way to keep in touch, to share information,
and to establish business contacts in the area of electronic
commerce and banking on the Internet.

The Journal of Internet Banking and Commerce (JIBC) is primarily
devoted to important announcements, refereed original articles,
guest columns, significant feature presentations from other
publications, as well as surveys, reviews, and letters to the
editor. We will try to keep away from technical discussions and
leave them to other specialized lists. Our Journal will be
issued every two months and will definitely focus on quality, not
quantity. We will be editing, filtering and summarizing, to
provide our busy readers with only substantial information. We
will do this by distributing only abstracts and summaries in the
email portion of the Journal. The complete articles and columns,
as well as background information, will be placed on our Web site
(http://www.arraydev.com/commerce/JIBC/).

Join our Journal and learn about the trends in electronic
commerce. We promise not to get too "techie." Not too many
fights but lots of good discussion. We need your articles, your
email, your contributions and discussion. Your feedback on
articles should be directed to the Editor, Gordon Jenkins. Direct
general comments about the publication to the Publisher, Nahum
Goldmann. You can email us directly or use the Questionnaire that
we keep on the JIBC Web site.

============================
SPONSORS/ADVERTISERS WELCOME
============================
The support of commercial sponsors and advertisers is
important. Please mention JIBC to any firm or organization you
think would be interested in reaching the high level readership
JIBC is attracting. For information about advertising types and
rates, email to communications@.... Information
is also available on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/private/index.htm

=========
COPYRIGHT
=========
The Journal Of Internet Banking And Commerce is Copyright (C)
1996-97 by ARRAY Development, Ottawa, Canada. All Rights
Reserved.

Copyright of individual articles remains with the original
author. Commercial use or republication requires the author's
permission. Copying is permitted for noncommercial,
educational use by academic computer centres, individual
scholars, and libraries. This message must appear on all copied
material.

===========
CIRCULATION
===========
JIBC Vol 2 No 2:

Total number of subscribers to JIBC email version : 1111
  508     : US Commercial (.COM)
   98     : Network (.NET)
   62     : Australia (.AU)
   45     : Canada (.CA)
   44     : US Educational (.EDU)
   37     : United Kingdom (.UK)
   31     : Non-Profit (.ORG)
   26     : Germany (.DE)
   19     : Belgium (.BE)
   16     : US Government (.GOV)
   16     : Italy (.IT)
   15     : Netherlands (.NL)
   15     : France (.FR)
   12     : Japan (.JP)
   11     : Singapore (.SG)
    9     : Switzerland (.CH)
    9     : Sweden (.SE)
    9     : Spain (.ES)
    8     : Taiwan (.TW)
    8     : South Africa (.ZA)
    7     : Austria (.AT)
    6     : Russian Federation (.RU)
    6     : Finland (.FI)
    5     : New Zealand (.NZ)
    5     : Hong Kong (.HK)
    5     : Brazil (.BR)
    4     : United States (.US)
    4     : Norway (.NO)
    4     : Israel (.IL)
    4     : Indonesia (.ID)
    3     : US Military (.MIL)
    3     : Soviet Union (.SU)
    3     : South Korea (.KR)
    3     : Mexico (.MX)
    3     : Latvia (.LV)
    3     : India (.IN)
    3     : Greece (.GR)
    3     : Argentina (.AR)
    2     : United Arab Emirates (.AE)
    2     : Ukraine (.UA)
    2     : Slovak Republic (.SK)
    2     : Portugal (.PT)
    2     : Malaysia (.MY)
    2     : Ireland (.IE)
    2     : Iceland (.IS)
    2     : Estonia (.EE)
    2     : Czech Republic (.CZ)
    2     : Croatia (.HR)
    2     : Colombia (.CO)
    1     : Thailand (.TH)
    1     : Romania (.RO)
    1     : Poland (.PL)
    1     : Pakistan (.PK)
    1     : Kuwait (.KW)
    1     : Hungary (.HU)
    1     : Egypt (.EG)
    1     : Dominican Republic (.DO)
    1     : Denmark (.DK)
    1     : Costa Rica (.CR)
    1     : China (.CN)
    1     : Chile (.CL)
    1     : Bermuda (.BM)
    1     : Belarus (.BY)
    1     : Barbados (.BB)
    1     : Anguilla (.AI)



(END of JIBC Vol 2 No 2, Part 2 of 2, March 1997)

*A Focus on Internet Commerce Taxation
(By Contributing Editor Mauro Cipparone)
http://www.arraydev.com/commerce/jibc/9703-06.htm
================
...
So how could an Internet tax regime work ? There are three questions
which need to be answered.  First of all, what should be taxed.
Secondly, who should tax it. Thirdly, how. I will only try to answer the
first two questions, leaving the third one open for discussion.

As to what should be taxed, I think that the basic principle of taxation, i.e.
that either income or consumption should be taxed, is still applicable. On
the Internet, income can be taxed by taxing the companies that do
business on it. Consumption is harder to tax, and will be even harder if
payer anonymity takes off. The only way of taxing consumption would
then be to force companies selling goods on the Internet to disclose to
the tax man their transaction log (which does not imply the disclosure of
the identity of the customers, as this is not known to the company).
Technically, some system to prevent companies from hiding transactions
should be developed. Some module which encrypts the transaction log
with a government key could do the job. Who should have the right to
tax ? Suppose I connect to AOL from the UK and buy a report in Spain,
who should tax me, the UK, the US or Spain ? The answer is : all three
countries, but I will be taxed differently. As I live and work in the UK, I
will pay income tax in the UK. In the US, AOL will pay taxes to the American
Government on the revenue generated by my activity (AOL might in turn
pass on to me a part or all of the tax), and the Spanish Government will
tax the seller for the income it gets from me through income tax and VAT.
This system would still work if I could buy anonymously, as long as AOL
and the Spanish firm cannot hide my payment (as an example, in the
Digicash scheme they have to send the coin to the bank which credits
their account, so that they cannot hide transactions).

However, if the system basically works for Internet commerce, it stops
working when we consider the Internet as a financial network. If I can
send money to other countries anonymously, then I can buy assets
abroad anonymously, and obtain income which is not recorded
anywhere. Although this income would be partially taxed when it is used
for purchases, it would escape any form of income tax.

It is to be noted, however, that this problem already exists. Although in a
double entry bookkeeping system such as today's banking system it is
theoretically possible to track any transfer to its source, in practice
this is every hard and lengthy process. Many companies, and indeed many
individuals already hold offshore accounts to avoid taxes. The big
difference would be that the Internet would allow everyone, and not just
a small elite, to avoid the tax man. This problem, as far as I can see,
will remain unresolved, at least until some international agreement or
political pressure will force tax heavens to change direction and
introduce a minimum level of rules. Maybe the fast development of the
Internet will be a spur to Governments to tackle this issue once and for
all.


================
* The Legal Report
(from Contributing Editor Rich Field)
http://www.arraydev.com/commerce/jibc/9703-07.htm
==============

Editor's Note: The comments in the following article should not be
construed as legal advice.

This month I thought I would reproduce a letter sent by Professor Peter
Junger of Case Western Reserve University Law School, Cleveland,
Ohio, USA, to the Nottinghamshire (England) County Solicitor. Junger,
already an elite member of the Internet rabble rouser's club (law school
division), has challenged UK authorities who claim that his hypertext link
to a sensitive (and claimed copyrighted) report is itself an infringement of
copyright.

Back in August 1996, Junger filed suit against the U.S. Secretary of State
in federal district court in Ohio, challenging as a prior restraint on speech
the then-current U.S. government cryptography export regulations and
their licensing requirements. The regulations, he argued, restrict his
ability to publish and communicate to non-US students classroom
information on various topics in computer law.

While not banking-related per se, Junger's letter highlights issues that
have only barely begun to ripple in Internet commerce, and therefore
ought to be of tremendous interest to the readers of JIBC.
- Richard

....


16 June 1997
C P. McKay, County Solicitor
Nottinghamshire County Council
County Hall
West Bridgford, Nottingham
NG2 7QP
United Kingdom

My dear Mr. McKay:

I am in receipt of a "notice" purportedly sent by you, though contained in
electronic mail addressed to me from someone named John Gass.
Although I have asked Mr. Gass for your e-mail address, I have not
heard from him. And so, assuming that the notice was actually from you,
I am compelled to send you this response by regular mail. I will also
attempt to send you a copy by electronic mail in care of Mr. Gass and will
post copies to the Fight Censorship and Cyberia-L mailing lists.

That notice refers to a disturbing report written by J B Gwatkin and
others describing how social workers in the Nottingham Department of
Social Services induced a group of abused children to
indulge in hysterical fantasies of Satanic rites, a report that your client,
the Nottinghamshire County Council, understandably wishes would go
away. In the notice you assert that the Nottinghamshire
County Council claims the copyright in this report despite the fact that it
was written primarily by Mr. Gwatkin, who deems it in the public interest
that the report be published, and the fact that it is apparently already a
public document. You also assert, correctly, that I have placed a copy of
this report on my web site (it is at ), although you ignore the fact that I
and my web site are located in Cleveland, Ohio, in the United States of
America, a locus where the writs of the courts of the United Kingdom
have never run.

As you know, your notice also contains the following rather infelicitous
threat: "I therefore give you notice that unless the report is removed
from the Website forthwith and for the avoidance of doubt within 24
hours of receipt by you of this mail The Nottinghamshire County Council
will issue such Court Proceedings including injunction proceedings or
take any action as may be appropriate." My first reaction was simply to
ignore this bit of silliness, grounded as it was on the misconception that
the "Copyright, Designs and Patents Act 1988" of the United Kingdom
applies to actions taken in the United States when, as I trust you know,
that Act specifically provides that copyright holders' exclusive rights
apply only to ``acts in the United Kingdom'' and on the belief---or the
pretense---that you could somehow persuade the Chancery Division of
the High Court to issue an affirmative injunction requiring someone who
was not within the Court's jurisdiction and who has had no contacts
whatsoever with the United Kingdom to perform acts in Cleveland, Ohio.

My inclination to ignore your threat was naturally strengthened by the
realization that, should you actually succeed in getting injunctive relief in
the United Kingdom, that injunction would be quite unenforceable here in
the United States. But I confess that I found your threats irritating enough
that I began to think that I should comply with your demand---publicly. I
have little difficulty in imagining the headlines that would have resulted
had I taken such a course of action: "English Prosecutor Forces U.S.
Law Professor to Suppress Report on Satanic Social Workers'' or
"Satanic Coverup Spreads to US.'' Although, mind you, the actual
headlines that you have already earned for yourself, like Private Eye's
"Satanic Abuse Special'' or Salon Magazine's "U.K. tries to censor the
Internet---An embarrassing report about a bungled satanic abuse
investigation brings out the British blue pencil brigade'', have already
made it clear that your efforts to suppress the truth about what
happened at Broxtowe have not had quite the result that you and your
client desired. After all, no one would have mirrored the Broxtowe report
at their sites on the World Wide Web had you not sought to enjoin its
original publication.

One would have thought that you would have learned that lesson by
now. There are at least a dozen web sites where the report is mirrored,
not one of which would have existed if you had not sought to suppress
its original publication on the web. And at my site alone the report has
already been retrieved more than 2,500 times. For those of us who are
opposed to governmental censorship of information on the World Wide
Web, this reaction is gratifying. I doubt that it is so for your client.

In the end though, I found myself unable to pretend that I am so naive as
to be able to take your threats seriously. If I regret this, I at least
have the consolation of knowing that you did succeed in bullying poor Jeremy
Freeman, a young Canadian who is not learned in the law, into removing
the report---and later a link to my mirror of the report---from his web site
in British Columbia, with the foreseeable consequences.

It is also my position that, were you to seek an injunction from a court in
the United States requiring me to remove the report from my web site
because of your client's claim of copyright, even if it could establish that
claim, my publication of the report on my web site is "fair use'' and is
protected by the Constitution of the United States.

The report is a compilation of facts, even if the allegations of satanic rites
that it discusses were fictions. As the United States Supreme Court
made clear in "Feist Publications, Inc. v. Rural Telephone Service Co.,
Inc.", 499 U.S. 340 (1991): "the copyright in a factual compilation is
thin.''
Since your client desires to suppress the work, rather than to publish
and sell it, they have suffered no damages from the posting of the report
on my web site; since I am making the report available as a public service
and receive no compensation for doing so, I have received no profits
from that posting: facts that go a long way toward establishing that my
posting of the report is fair use under the copyright law of the United
States.

But the most important fact is that the report that your client wants to
suppress is a document whose publication may assist in the prevention
of further abuse of children by public authorities who subscribe, for
whatever reason, to fantasies about satanic rites. As the report says:
     "We have to consider the damage that may have been done to the
      children in working with them on the basis that they had been
       involved in experiences such as the slaughter of sheep  and the
      killing of babies that had not actually happened. What has been done
      to [Mary] by convincing her that she was a child murderer who had
     indulged in acts of cannibalism or that she might kill again if she did
     not feel guilty?''

I initially mirrored the report on my web site as part of the materials that I
have collected relating to freedom of speech on the Internet for my
course in Computing and the Law and as a demonstration of the futility of
trying to suppress any document that has once been published on the
World Wide Web. The other documents that I have mirrored there are, I
fear, of interest only because of the efforts to suppress them; the report
that you and the Nottinghamshire County Council desire to disappear is,
on the other hand, an important document that must be available to family
therapists, police departments, departments of social welfare, and
lawyers throughout the world. It is an important historical document,
especially in its tracing the spread of satanic hysteria to sources in the
United States. As the report says on this point:

We had previously been made aware that an extreme right wing branch
of the Republican Party funded by Presidential Candidate, Lyndon La
Rouche had been spreading material throughout the USA claiming that
Day Centre Workers, Social Workers and other 'lefties' were Satanists
abusing children and that this was part of a communist conspiracy to
undermine the family. Apparently extreme right-wingers were unhappy
at the allegation of parents sexually abusing their children as they
perceived this as an attack upon the family. As a response they had
conceived the conspiracy theory as an alternative explanation. We do
not know whether this was an influence in the USA cases but we
understand many of the convictions were of Day Care Workers based
solely upon the bizarre testimony of young children as related to experts
without any actual corroborative evidence. In view of this scenario and
our research into American cases we would not accept that any
literature from the USA is reliable unless it is supported by corroborative
empirical evidence.

More importantly the publication of the report may assist the forces of
reason in rejecting the evil that once infected the social workers of
Nottingham. That is, after all, why its author, Mr. Gwatkin, who is a social
worker himself, felt that it should be published.

I am not, by the way, insensitive to your claim that: "The Nottinghamshire
County Council has Statutory and Common Law obligations and duties to
those young people. It is in acknowledgement of those Statutory and
other Common Law obligations and duties that The Nottinghamshire
County Council is taking the steps mentioned in this letter.'' But I am afraid
that I do not believe you. The report, after all, has been carefully edited to
hide the identity of the young people who were the victims in this sordid
affair. In any case, even were I to try to suspend my disbelief the fact
remains that

I agree with the authors of the report when they say: "we do not
consider that suspending disbelief should also mean a suspension of
commonsense or the use of critical faculties.'' I shall therefore not
comply with your demands.

Sincerely yours,
Peter D. Junger


=============
*Smart Card Ends Plastic Proliferation
(From Contgributing Editor Mary-Anne Goldsworthy)
http://www.arraydev.com/commerce/jibc/9703-10.htm
==============

Smartcard technology is developing at a rapid rate both in
Australia and globally.  The Multos card is a significant
development in smartcard technology as it will be able to hold
multiple products and services on the one card with the
cardholder having the ability to customise.  It will also signify
the development of a smartcard standard.  Australia is actively
involved in this project as well as a number of smartcard trials
in the last 2 years.  Government involvement in this area is also
strong in Australia with state and federal government agencies
currently preparing strategies for the implementation of
smartcards.  This month's contribution from Down Under is an article
entitled "One Card Trick Spells End of Plastic Proliferation" By Fred
Brenchley, which originally appeared in the Australian Financial Review.

===============
*Hettinga's Best of the Month
(From Contributing Editor Robert Hettinga)
http://www.arraydev.com/commerce/jibc/9703-12.htm
================

Date:  Fri, 13 Jun 1997 15:18:24 -0400 (EDT)
From: Black Unicorn <unicorn@...>
To: Multiple recipients of <e$@...>
Subject:  Re: Money Laundering in the Geodesic Economy

On Fri, 13 Jun 1997 mfarncombe@... wrote:V ViewAttch  17%On
Fri, 13 Jun 1997 mfarncombe@... wrote:
>   Hi all,
>
>   I suspect that one of the principal things that the Feds are
>   worried about is the potential for money-laundering.

This is a loaded statement.

Money laundering is only a concern in so far as it means government
control over the economy is deminished.  (And to the extent that it allows
one to seize the funds as their title converts the to United States at the
instant of commission).

Money laundering is a "tack on" offense.  (Much like, say, mail fraud).
The number of original cases which derive from actual money laundering
investigation is vanishingly small.  Instead it is usually added on to an
indictment when the defendant is or has been under investigation for
something else.  Because money laundering statutes are generally phrased
something like "knowingly concealing the proceeds of a criminal act,"
usually you find the criminal act first and then look to see if attempts
were made to conceal the funds.  Professional money launderers are rarely
caught.

>   At the moment, conversion of money from illegal sources (drug
>   sales, extortion by terrorists, major theft etc) into the legal
>   economy (equities, bonds, property etc) is difficult because
>   any financial institution is obliged, in most parts of the
>   world, to obtain proof of identity of its clients and to report
>   suspicions of wrongdoing.

I disagree rather strongly.  Currently the favorate method is to hand the
cash, in bulk, to the professional money launderer who, on the spot, cuts
a clean bank check (perhaps from a reputable import/export or real
estate company) for the cash amount minus fee (5-20% usually).

The launderer takes all the risk in the process, including smuggling the
funds out, hashing them through iterations and (usually) returning them
right back into the United States as legitimate overseas investment.  It's
like the seperation of capital and management skill.  The money launderer
is free to concentrate 100% of his time to managing his extensive
laundering empire, the hundreds or thousands of shells and webs of
accounts and maintains the liquidity to drop 5 million on the notice of a
phone call.

>   Hence, I suspect, the $750 limit.
>   The reason for this check is that it is otherwise very easy to
>   shuffle funds back and forth between financial instruments to
>   confuse the trail and defeat the cops.

The $750 limit is going to do about nothing for the problem of money
laundering. It will inconvenience the casual launderer, and that is about
all.  What it will do is put a significant cost on the head of the
consumer.  A CTR costs a bank between $5 and $15 to file today (according
to the ABA).  $17 if you listen to the Report of the Financial Action Task
Force on Money Laundering.  In 1993 the 368 largest banks (assets over $1
billion) filed 4.5 million CTRs.  The cost was estimated at $72 million
dollars.  (John Byrne, General Counsel, American Bankers Association).
10,765,000 CTRs were filed in 1994.  About .5% are marked "suspicious."
Now the $750 limit?  The number of reports to be filed is staggering and
.5% is beyond government to police properly without 5,000 new hires.

No, clearly the $750 limit is not to catch money launderers, but to
create and perpetuate detailed transactions record keeping.  FinCEN is
much more useful to link transactions to defendents in non-money
laundering cases.  "What do you mean you weren't in California in May?
Our records show you accepted two wire transfers there on the 15th and the
16th."

And consider this.  If I build a machine which has a 95% accuracy rate in
detecting money laundering, that is to say that it will identify a given
transaction as money laundering or legitimate with 95% accuracy, I still
have a serious problem.

Given 10,000 transactions, with .2% (20) representing money laundering we
find the following figures:

19 (95% of 20) money laundering transactions will be flagged as illegal
1 (5% of 20) laundering transaction will be incorrectly flagged as legal.
500 (5% of 10,000) legitimate transactions will be incorrectly flagged as
illegal.

For every one money laundering transaction flagged there will be 26
legitimate transactions flagged and only about 3.6% of all the flagged
transactions will actually be illegitimate.

Now consider all this in context.

There are over 700,000 wire transfers a day amounting to over $2
trillion.  About half go through FedWIRE and CHIPS.  SWIFT is harder to
count.
The most pro-government figures have somewhere on the order of $400bln a
YEAR being laundered.  The figure I used above (.2% of transactions are
money laundering) is high by orders of magnitude.  Depending on who's
figures you use it's more like 0.008%.

>   I can't subscribe to the full libertarian view that there's no
>   such thing as right and wrong, only freedoms and restrictions.
>   Because of this, I think we have to accept that the Feds have a
>   valid concern, as instant and frequent movement of large sums
>   of untraceable, impersonal e-cash would mean that the only way
>   to stop money laundering would be to check the identity of
>   anyone converting real-cash into e-cash.  Now that does perturb
>   me...

What you do not address is what is wrong with money laundering.  Money
laundering was never a crime until 1986 in the United States, [Money
Laundering Control Act of 1986  (Codified @ sections 1956 and 1957 of
Title 17 of the U.S. Code)] and then only made so because it fit in the
"war on drugs."  The result:  Total financial transparency in the U.S.
Money laundering is a created offense.

Also consider that becuase current efforts to curb money laundering are
basically useless, you may see identity checking anyhow.  (The $750 limit
is basicially an identity checking provision already).
Money laundering is a crime because the drug market in the United States
is so substantial it is impossible to police it without following the
money.  You can't do that unless you have near financial transparency.

>   Given the response of governments to anything untaxed (eg
>   running drugs that aren't tobacco), these regulations could
>   stay with us for years to come.  Has anyone got another
>   foolproof scheme to foil e$-laundering?

Deep down even you seem to recognize that Money Laundering has nothing to
do with catching criminals.  It's all about control and revenue.
The feds would do better to concentrate intelligence assets (more so than
now) on counter narcotics and do their best to schedule raids to seize
cash when it's sitting around than to track every transaction on the
planet.

I don't have it here, but if anyone is interested I had a report on the
costs of Money Laundering enforcement I can try and dig up.
One of the interesting figures was the number of dollars spent to stop one
dollar from being laundered (Around $35,000 as I recall) and the number
spent to seize one dollar of laundered money (Around $110,000).

>   Martin Farncombe, Ernst & Young UK
>   (views represented are personal, not corporate)
--
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===============
* The UNCTAD/ESCAP Conference on Information Technologies and
Electronic Trading in the Asia-Pacific Region
(By Contributing Editor Carlos Moreira)
http://www.arraydev.com/commerce/jibc/9703-08.htm
==============

...Conclusions

The UNCTAD initiative on electronic commerce including the Global Trade
Point Network GTPNet, Mirror Sites, Electronic Trading Opportunities
(ETO), and the Secure Electronic Authentication Link (SEAL) have, over a
span since the United Nations International Symposium
on Trade Efficiency in 1994, made a number of moves toward an
evolution of the way trade is conducted. The initiative thrives on a
transparent and open system, and greater global access
through the Internet. It is still continually on the evolution curve, with a
number of other players, including companies, collaborating to reach at
applying more technology for improvements and new features.

The UNTPDC Secure Electronic Trading Conference proved to be a
practical and effective combination of panels, sessions, demonstrations
and transactions which convinced the audience that
this new format to conduct UN conferences for Electronic Commerce is a
model for the future. Three other UNTPDC Conferences on Secure Electronic
Trading were officially requested by the city of Melbourne (30th October
to 2nd November 1997) with an expected number of 40,000
participants and in Dubai first quarter of 1998 which will integrate the
Arab world on electronic commerce and Singapore on 2nd quarter 1998. The
next conference will feature full transactional
capabilities using the Secure ETO system and SEAL concept and
business will be concluded during the Conference with the support of the
technology developed and integrated by this project.

Recommendations

In view of the need to agree on the technical standards and methodology
of SEAL, the Technical Committee should review the documentation and to
give their comments on a priority basis to enable the user guide to be
completed. Each Committee member should follow up on the areas of
expertise being contributed to SEAL.

To enable more trade practitioners to be made aware of the "Interact
Asia Pacific Multimedia Festival" to be held at the Melbourne Exhibition
Center from 30 October - 2 November 1997,
ESCAP should disseminate the festival to members and associate
members.

UNTPDC should give priority to the authentication and validation process
through a strategic alliance with Kompass Asia-Pacific and to increase the
scope for the installation of information kiosks for business travelers at
major airports in the region.

ESCAP should encourage the participation of small and medium scale
enterprises in electronic trading through its networking activities in
trade, investment, and through its association with other
international and regional institutions.

ESCAP should support initiatives concerning addressing of common
issues in the Asia and Pacific region, such as an association of trade
points.

ITC should arrange to establish a registration procedure for the
distribution of the COMREG software, source codes, and manuals. ESCAP may
be proposed as the distribution center for the Asia and Pacific region.

In view of the wide range of resource persons and exhibitors for the
Conference and Exhibition, the presentations, papers, List of
Participants, arrangements and other relevant information are made
available at an Internet website at the following address:
http://urgento.gse.rmit.edu.au/conference/bangkok97



Administrative Notices


========================================
JOURNAL OF INTERNET BANKING AND COMMERCE
========================================
ISSN 1204-5357

Publisher Nahum Goldmann
ARRAY Development
Ottawa, Canada
Nahum.Goldmann@...
http://www.ARRAYdev.com

Chief Editor: Gordon Jenkins
JENKINS AND ASSOCIATES INC.
jenkins@...
http://www.gordjenkins.com

Managing Editor: Tom McKegney
Tom.McKegney@...
http://www.ARRAYdev.com

Contributing Editors:

In alphabetical order:
U.K. Editor: David G.W.Birch
David G.W. Birch is a Director of the UK consulting firm Hyperion,
which he helped to found in 1986. He provides analysis, creation and
facilitation expertise to clients, specialising in the field of electronic
commerce where he is recognised as one of the UK's leading consultants.
Prior to Hyperion, Dave spent several years as a consultant specialising
in communications after having graduated with a degree in Physics. Dave
has lived and worked in Europe, the Far East and North America helping
organisations ranging from SWIFT and AT&T to Mondex and the Indonesian
PTT: he therefore has a broad knowledge base and is able to synthesise
experience from a variety of market sectors.

Southern Europe: Mauro Cipparone
Mauro Cipparone has recently graduated summa cum laude at LUISS
University, Rome, with a thesis on the economic consequences of Internet
payment systems. He collaborates with the computing center of LUISS
University, Rome, and with the association "Liber Liber," occasionally
giving lectures on Internet payment systems.

Legal Editor: Richard Field
Richard Field is an attorney and legal consultant in Cliffside Park,
New Jersey, U.S.A. He chairs the Electronic Commerce Payment Committee of
the American Bar Association.

Innovation Editor: John Gehl
John Gehl produces the weekly electronic newsletter INNOVATION with
partner Suzanne Douglas.

Australian Editor: Mary-Anne Goldsworthy
Mary-Anne Goldsworthy is Executive Officer of the Centre for
Electronic Commerce at Monash University, Gippsland Campus, Churchill,VIC
3842 The CEC is a national independent consulting, training and research
centre for electronic commerce services to assist industry and government,
and specifically SMEs (small to medium enterprises).

Security Editor: Bob Hettinga
Robert Hettinga rah@... 44 Farquhar Street, Boston, MA
02131 USA

Eastern Europe: Will Keenan
Will Keenan is Regional Advisor on Trade Facilitation with the UN
Economic Commission for Europe in Geneva, Switzerland. Any findings,
interpretations and conclusions expressed in JIBC are personal and should
not be attributed to the UN/ECE.

UNCTAD Editor: Carlos Moreira
Carlos Moreira is Head of the United Nations Conference for Trade and
Development (UNCTAD) Trade Point Development Centre (TPDC) which is hosted
by the Royal Melbourne Institute of Technology (RMIT). UNCTAD-TPDC is
cooperating with RMIT to establish the "Global Trade Point Network"
presently in 134 countries. The research work covers technical
feasibility, cost effective designs, "information highway" requirements
and the modus operandus to support the establishment of electronic
information processing, information infrastructure and electronic commerce
technologies to improve trade efficiency throughout the world.

JIBC Postmaster/Webmaster
Phil Beauchamp, ARRAY Development
pbeaucha@...

=================
JIBC ANNOUNCEMENT
=================
The goal of this publication is to inform executives,
professionals, entrepreneurs, government personnel and other key
players on principal developments and trends in the rapidly
evolving electronic commerce area all over the World. This free
online Journal is a way to keep in touch, to share information,
and to establish business contacts in the area of electronic
commerce and banking on the Internet.

The Journal of Internet Banking and Commerce (JIBC) is primarily
devoted to important announcements, refereed original articles,
guest columns, significant feature presentations from other
publications, as well as surveys, reviews, and letters to the
editor. We will try to keep away from technical discussions and
leave them to other specialized lists. Our Journal will be
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provide our busy readers with only substantial information. We
will do this by distributing only abstracts and summaries in the
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as well as background information, will be placed on our Web site
(http://www.arraydev.com/commerce/JIBC/).

Join our Journal and learn about the trends in electronic
commerce. We promise not to get too "techie." Not too many
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email, your contributions and discussion. Your feedback on
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============================
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============================
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=========
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=========
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Reserved.

Copyright of individual articles remains with the original
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===========
CIRCULATION
===========
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(end of JIBC Vol 2 no 3, July 1997)

Nahum Goldmann, Publisher, invites you to review Vol. 1, No. 1,
of the Journal of Internet Marketing (JIM) which
ARRAY Development just recently started to publish.

If you wish to subscribe (for free) and receive future JIM issues at
approximately three-four month intervals, follow these simple
instructions (complete instructions are located at the end of this
email).

Please note:  *** JIBC and JIP subsribers will NOT receive any
further mailings from JIM unless they subscribe ***.

To subscribe to the separate messages version:
Send email to listserver@...
Body of message (NOT Subject:)
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http://www.ARRAYdev.com/commerce/jim/current.asp


=================
Table of Contents
=================

Editorial (By Bob Paajanen and Cathy Allington, Chief Editors)
http://www.ARRAYdev.com/commerce/jim/9802-01ed.htm

Publisher's Corner and Call for Editors (By Nahum Goldmann)


Feature Articles

Marketing on the Internet -- Providing Consumer Satisfaction
(By Joe Abramson and Craig Hollingshead)
http://www.ARRAYdev.com/commerce/jim/9802-01.htm

Reverse Marketing: Synergy of Purchasing and Relationship Marketing
(by Wim G. Biemans and Maryse J. Brand)
http://www.ARRAYdev.com/commerce/jim/9802-02.htm

Hang the Mystique - Use it for what it is! (By Cathy Allington)
http://www.ARRAYdev.com/commerce/jim/9802-03.htm

Announcement:  Electronic Forum for Internet Banking and Commerce !!!

Advertisement:  Hackers4Hire*(TM) from CSCI Computer Security Canada Inc.

Advertisement:  The Sales Handbooks from Government Technology Press

Advertisement:  Newsletter on Electronic Payments

Administrative Notice



================
Editorial (By Bob Paajanen and Cathy Allington, Chief Editors)
================

Internet Marketing: Can You Resist a Byte?

When Eve offered Adam a "bite" of the apple he was unable to resist.
Bill Gates has offered us a "byte" of his apple have you succumbed to
temptation?  The advent of the Internet is the most exciting marketing
innovation in history. 100 million users worldwide, with an estimated 200
million by the year 2000. As with the fabled apple, the temptation can be
disastrous for some and overwhelmingly profitable for others.

The purpose of the Journal of Internet Marketing is to show small to
medium sized businesses how to take a "byte" and profit. We will utilise the
best of current academic and practical thinking to give you practical advice
on how to maximise the enormous potential of the Internet to your profit.

Some facts:

* Consumers are increasingly being educated to expect and thus demand 24
hour a day, 7 day a week sales and service.
* Consumers today are more educated and want more information prior to
making a purchasing decision.
* Because the Internet meets these 2 basic criteria of consumer needs, the
worldwide market of Internet users is growing exponentially, faster than any
other
media.

Television has traditionally been the biggest spending medium for
advertisers seeking to sell products and services. With an estimated market
penetration in the Western world of around 95%, TV has been accepted as a
"traditional" advertising medium for many years. But look at the history of
TV!

At the end of World War 2, there were an estimated 10,000 television sets
in use only, with about half of these in New York City. By the end of 1949,
1 million sets had been sold. By 1956, the gross income of the television
industry - predominantly advertising - was around $590 million.

The Internet and Internet Marketing is less than 10 years old - really
only achieving increasing prominence as a marketing tool over the
past 5 years. And yet already, after such a short time span, revenue
from commerce conducted over the Internet in 1997 is estimated
at $9 billion! Clearly, "There's gold in them thar bytes!"

The rules of successful Internet marketing have not yet been clearly
spelt out. Television was seemingly much easier - it was something
tangible which you could see, and required very little effort or
understanding on behalf of the viewer. It was something both marketers
and consumers could relate to, and relied predominantly on visual impact for its
marketing success.

Conducting commerce over the Internet is different. There are guidelines to
follow. There are success stories. Surprisingly, there is also a lot of
common sense.

We look forward to sharing that with you over the future editions.
Our objective is to help you to unravel the "mysteries" of Internet
Marketing.  We intend to teach you how to "byte" the apple, without
choking on the pips!

Each issue will include articles which reflect current thinking and
practices, together with our own comments and insights. Please
complete the following subscriber information to receive your quarterly
copy via email.

Please also feel free to respond by way of a letter to the Editors.

Bob Paajanen and Cathy Allington, Chief Editors
Email: bobpaaj@...
Email: awwful@...



=======================
Publisher's Corner and Call for Editors
=======================

By Nahum Goldmann
Nahum.Goldmann@...
http://www.ARRAYdev.com/

I am pleased to announce the inaugural appearance of the Journal
of Internet Marketing.  As sponsor, ARRAY Development is proud to
add JIM to our other successful publications, the Journal of Internet
Banking and Commerce and The Journal of Internet Purchasing.

JIM is envisioned as a leading edge publication to inform
professionals and executives on principal developments, benchmark
practices and future trends in Internet marketing practices. We
invite marketing professionals, academicians and authors to submit
important announcements, original articles, guest columns and
significant feature presentations. JIM also welcomes surveys, book
reviews and letters to the Editor.

We will appreciate your assistance in identifying potential advertisers
and sponsors whose support will allow us to maintain JIM as a free
service for the marketing community.

I believe JIM will provide an interesting and valuable service to
marketing professionals who are exploring and developing effective ways
to use the Internet and Web-based tools. I look forward to your comments
when the first JIM rolls off the presses -- figuratively if not literally!

The Editors of this issue are Bob Paajanen and Cathy Allington.
Regretfully, Bob recently changed his job and Cathy's time is
preocupied with many other business endevours, hence they will not
be able to proceed as Chief Editors any longer.   On the behalf of the
Editorial Board I would like to express my gratitude to both of them and
wish them well in their business and writing activities.  Bob agreed to
participate at JIM as a  Contributing Editor, hence we hope that both
he and Cathy will contribute to future issues as well.

Since the JIM Editor's position is now officially vacant, we are
actively encouraging qualified individuals to email the Publisher with the
proposals for future cooperation in this online publication.

Nahum Goldmann
JIBC/JIP/JIM/JISec Publisher
Nahum.Goldmann@...


===============
Feature Articles
===============

Marketing on the Internet -- Providing Consumer Satisfaction
(By Joe Abramson and Craig Hollingshead)

The Internet was originally intended to be used as a medium for defense
and academic communications. Today it continues to serve that purpose
but is increasingly used for recreation. In the future, it will be an
important commercial channel. It has been suggested that last year
there was $ 2.8billion of commerce conducted on the Internet, by 2001 that
is expected to swell to $ 240 billion. If a company is to benefit from this
trend it must develop marketing techniques specifically suited to the
Internet.

At present, all that is known about marketing on the Internet been learned
from experience over the past few years. One of the lessons learned is that
the marketing concept applies to Internet marketing. The marketing concept
stresses the importance of satisfying the consumer. The purpose of this
paper is discuss how traditional marketing considerations can be used to
provide satisfaction to ultimate consumers.
http://www.ARRAYdev.com/commerce/jim/9802-01.htm


Reverse Marketing: Synergy of Purchasing and Relationship Marketing
(by Wim G. Biemans and Maryse J. Brand)

Firms increasingly realize that dramatically changing market conditions
require significant changes in their purchasing function. In more and more
firms, purchasing is becoming pro-active and of strategic importance. This
phenomenon has been referred to as 'reverse marketing'. As the term implies,
there are clear similarities with the marketing concept. This paper explores
this concept by describing how companies can implement reverse marketing by
making use of well known marketing concepts and tools. A detailed
description of a fictitious case illustrates how basic marketing principles
can be used to realize pro-active purchasing.
http://www.ARRAYdev.com/commerce/jim/9802-02.htm


Hang the Mystique - Use it for what it is! (By Cathy Allington, Chief
Editor)

Capturing 70% of London's top antique dealers within 6 months
is no mean feat.

Add to that a technology illiterate antiques dealer selling Internet
marketing in 1995 to a market where 98% didn't even use a computer,
and you have the basis for an Internet marketing success story
which renders much of today's theory obsolete.
http://www.ARRAYdev.com/commerce/jim/9802-03.htm



====================================================
====
Announcement:  Electronic Forum for Internet Banking and Commerce !!!
====================================================
====

This is not only a warm welcome to all readers of the Journal for Internet
Purchasing but also an invitation to join in lively discussion and debate
with those of us dealing with the same electronic commerce opportunities
and issues which you face every day.  I have just been asked by Nahum
Goldmann, the JIP/JIBC Publisher, to take on the responsibility of
moderating the IBC Forum and would like to get the ball rolling with a
short introduction and some topics to prompt discussion (maybe even
controversy).

My background is firmly rooted in logistics, primarily procurement, with
most of my experience being in the Canadian federal public sector, both in
the business of actual procurement operations and that of corporate staff.
My last assignments involved the initiation, development and executive
direction of major electronic commerce initiatives.  As the members of this
forum well understand, this is not simply the application of technology,
but involves much more so the challenges of business process renewal and
change management.

Since leaving the public service a little more than a year ago, I have
worked as a consultant in the areas of procurement and electronic commerce.
That has given me the chance to catch my breath and to recover from some
of those bad habits, aggressive tendencies, cynicism and paranoia that
project managers in the electronic commerce world all seem to share.  So
that is where I come from, that is what has led me to believe in the
tremendous process opportunities for electronic commerce which we can find
through using the Internet.

For the purposes of our discussion in the IBC Forum, we may want to follow
the life cycle of an electronic banking or electronic procurement
initiative.  Based on my experience, two of the initial, key aspects
surround transaction costs and performance measures.

There has been a preliminary discussion in this Forum about the cost of
representative transactions.  Surveys done in the private sector and the
public sector indicate that the average cost of a transaction (before the
application of electronic commerce tools and techniques), from commitment
of funds through procurement and then payment, seems to fall in the range
of $100 to $150.  Of course, that number is attacked in a very defensive
way by those involved in this very linear and bureaucratic (read stovepipe)
process.  This is an extremely difficult number to derive but it forces the
discovery of every little step in the process.  Often it is a shattering
revelation to those who have owned parts of that process.

Hence, my first question to the IBC Forum -- What experiences have you had
in ferreting out the cost of a transaction, how have you broken through the
barriers of the corporate accountingsystem, and how have you dealt with the
rumblings this caused?

Very much of a related issue is that of performance measures.  It is my
firm conviction that everyone says they want to be measured, but no-one
really means it.  The traditional processwhere we try to ascertain
transaction costs is one that undoubtedly rewards maintenance and expansion
of the status quo.  For example, the more transactions completed by central
purchasing the better.

As you know, this has to be turned around so that we reward and encourage
desired new behaviours, such as reduction in the number of contracts
awarded by central purchasing and corresponding increase in the number of
end user transactions satisfied by electronic catalogue orders.  Hence the
second question -- What performance measures would you advocate, or what
have you found to be particularly useful metrics in moving to closer
electronicbanking and commerce?

More to follow soon.  I look forward to meeting you during our discussions.
Stop lurking-don't be shy.  Yes, it's free.  You can subscribe to the IBC
Forum by pointing to:
http://www.ARRAYdev.com/commerce/JIBC/forum.asp
or through email:

To subscribe to the digest version:
Send email to listserver@...
Body of message (NOT Subject:)
subscribe ibc-forum
set ibc-forum DIGEST

To subscribe to the separate messages version:
Send email to listserver@...
Body of message (NOT Subject:)
subscribe ibc-forum

Steve Rollwage
Rollwage Associates
Email:  srollwage@...



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=====================================

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This newsletter covers all sorts of electronic payment methods such as EFT,
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Subscribtion is free without obligations by emailing to
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====================
Administrative Notice
====================

Journal of Internet Marketing

JIM is the leading edge publication which informs marketing professionals
and executives on principal developments, benchmark practices, and
future trends in the Internet-based marketing practices of governments
and industry. This free online interactive journal is a way to keep in
touch, to share information, and to establish business contacts
(networking) for worldwide marketing professionals who specialize in
electronic commerce solutions.

JIM invites marketing professionals, academicians and publishers to
submit important announcements, original articles, guest columns and
significant feature presentations. We also welcome surveys, book
reviews and letters to the Editor. Technical discussions in highly
specialized areas of expertise will be kept to an absolute minimum.

JIM is formally issued every three to four  months when an email summary of
current articles is distributed to subscribers. The full text of
articles is posted on the JIM Web site at
http://www.ARRAYdev.com/commerce/jim/current.asp.

The publication is complemented by the Compendium of Internet Banking and
Commerce Initiatives at
http://www.ARRAYdev.com/cgi-bin/guestbk?compendium. We invite readers to
provide brief descriptions of products, books, and services that they think
others will find interesting.  We also sponsor IBC-Forum which supports
informal discussions of electronic commerce issues
(http://www.ARRAYdev.com/commerce/JIBC/forum.asp).

In JIM you will find informed discussion of the latest internet-based
marketing trends and practices from around the world. Our priority is
quality, not quantity. We want to maintain JIM as a service that
provides substantial information and an effective forum for your articles,
your letters, your insights and ideas.

The Journal is maintained and published courtesy of ARRAY Development of
Ottawa, Canada (http://www.ARRAYdev.com/).

You can reach the Editor and Moderator, Bob Paajanen, with any
questions or comments by email at bobpaaj@...;


Publisher Nahum Goldmann is at Nahum.Goldmann@....

Please note that the mailing address for subscribe/unsubscribe is:
listserver@...

************

World Wide Web information about this mailing list is available via
http://www.ARRAYdev.com/commerce/jim/

Please send any questions related to maintenance of this Web site to
JIM-admin@...

Note that ARRAY Development is neither responsible for, nor necessarily
shares opinions expressed by those submitting articles or commentary.

This message is sent monthly to the JIM list. If mail sent to you cannot
be delivered successfully, your email address will be automatically
removed from the mailing list. If you believe you have been dropped, you
can check your subscription status by sending mail to
majordomo@... and writing in the body of message (NOT on Subject
line):
which [string]

This will return an email containing which lists you are subscribed to at
ARRAY Development.

If you include a string after the command which, the returned email will
contain all the members of lists at ARRAY Development who's names or email
addresses contain that string.

To subscribe to the separate messages version:
Send email to listserver@...
Body of message (NOT Subject:)
subscribe JIM

To unsubscribe to the separate messages version:
Send email to listserver@...
Body of message (NOT Subject:)
unsubscribe JIM

To contribute to the mailing list, send mail to JIM@....

Notice the difference between the two email addresses for subscribing
(listserver) and posting (JIM)!

To get a description of all valid commands, send mail to:
listserver@... and write in body of message
(NOT on Subject line) help


============================
Sponsors/Advertisers Welcome
============================

The support of commercial sponsors and advertisers is important. Please
mention JIM to any firm or organization you think would be interested in
reaching the high level readership JIM is attracting. For information about
advertising types and rates, email to communications@....
Information is also available on the JIM Web site at
http://www.ARRAYdev.com/commerce/jim/private/index.htm



=========
Copyright
=========

The Journal Of Internet Marketing ISSN 1480-3798 is Copyright (C) 1997-98
by ARRAY Development, Ottawa, Canada.  All Rights Reserved.

Copyright of individual articles remains with the original author.
Commercial use or republication requires the author's permission.  Copying
is permitted for noncommercial, educational use by academic computer
centres, individual scholars, and libraries. This message must appear on
all copied material.

Contributing Editors

Dear Colleagues:

Welcome to the Journal of Internet Banking and Commerce.  The following
are guidelines for contributing editors.

Yes, we will be publishing monthly and there will be full attribution
for you and your column.  That is to say, you will have your name on the
column, you can call the column what you wish (within reason and the
scope of the Journal), you will have your e-mail address at the bottom
and we will accept letters to the Editor, which Gordon of course will
forward to you for response in the Journal. The JIBC will be published at
the beginning of every month and, as a good Editor, Gordon Jenkins will
be hounding you if your article is not in by the end of the third week
preceding the next month issue.

Do we write articles ourselves or publish other people's articles?  The
answer is that you can do both. When you submit your article, please
specify that it is written by you. On the other hand, when you submit one
of your peer's articles that you think is worthy of publishing, please
clear with that person that you have their permission.  Also make it
clear to them that they will be cited or given attribution as being the
originator of the article.  You will be credited as a contributing
editor on their articles.

Please keep the articles down to three pages, if possible.  Also submit
them to the us in a text letter format.

We look forward to working with you all.  We know we have gathered an
elite group (see attached list of contributing editors) of the best for
this interesting area of Electronic Commerce. We can learn from each
other, as well as from the Journal. With your help, we will make this
Journal to be the best Journal in information technology.

Here's to the first issue at the beginning of the New Year.  Seasons
Greetings!


Gordon Jenkins                Nahum Goldmann
Editor                             Publisher
  --
  GORD JENKINS

   jenkins@...
             OR
   gord@...               35 Biscayne Cr
                                          Ottawa ON
URL http://www.infop.com/karoma          CANADA
tel 613 794 6735                         K2E 5R9
fax 613 723 8938

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====================================================
==================
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Precedence: bulk
Reply-To: jibc@...

JIBC Vol 2 No 1

Table of Contents

1. Editorial

2. Notices

3. Abstracts/Extracts of Web Feature Articles
      -- See http://www.arraydev.com/commerce/jibc/current.asp
***********
The Legal Report
      Contributing Editor Richard Field
-- http://www.arraydev.com/commerce/jibc/9701-2.htm
************
Internet Stock Exchange Survey
      By Alan Majer
--http://www.arraydev.com/commerce/jibc/9701-3.htm
************
Electronic Commerce in Java
      By Qusay H. Mahmoud
-- http://www.arraydev.com/commerce/jibc/9701-4.htm
************
How Do We Protect the Civilian Infrastructure?
      By Stewart A. Baker and Paul R. Hurst
-- http://www.arraydev.com/commerce/jibc/9701-5.htm
***************
Untraceable Payments, Extortion, and Other Bad Things
      By Tim May
-- http://www.arraydev.com/commerce/jibc/9701-7.htm
*************
Hettinga's Best of the Month
      Contributing Editor Robert Hettinga
-- http://www.arraydev.com/commerce/jibc/9701-8.htm
*************
The Impact of IETF's EDI over Internet
Recommendations on World-wide Electronic Commerce
      By Rik Drummond
-- http://www.arraydev.com/commerce/jibc/9701-9.htm
***************
Advice on Electronic Commerce Programs for Small to Medium-sized
Enterprises
      Contributing Editor Mary-Anne Goldsworthy
-- http://www.arraydev.com/commerce/jibc/9701-10.htm
***************
Over the Water -- The View from the UK
      By David G.W. Birch
-- http://www.arraydev.com/commerce/jibc/9701-12.htm
****************
The Bundesbank and Electronic Cash
      By Christopher Kuner
-- http://www.arraydev.com/commerce/jibc/9701-13.htm
******************
Extranet:  The "Third Wave" in Internet Electronic Commerce
      By Nahum Goldmann
-- http://www.arraydev.com/commerce/jibc/9701-18.htm
*****************
Internet-Based Financial EDI: The Case of Bank of America and
Lawrence Livermore National Laboratory Pilot
      By Arie Segev, Jaana Porra, Malu Roldan
  --http://www.arraydev.com/commerce/jibc/9701-17.htm
*****************
The Unisys Internet Banking Site: A European Perspective
      By Michael T. Hennigan
--http://www.arraydev.com/commerce/jibc/9701-19.htm
*****************

  4. Administrative Notices



* * * * * * * * * * * * * * * * * * * * * * * * *
JIBC Special Anniversary Edition
Volum 2 No 1, January, 1997

=============
Editorial
=============
By Gordon Jenkins
jenkins@...
http://www.gordjenkins.com

We are into our second year and I would like to thank all our
regular contributing editors.  Please take time to read the list.

They are an impressive group of people. Without them, we would
not have a Journal.

Legal Editor: Rich Field
Security Editor: Bob Hettinga
Innovation Editor: John Gehl
U.K. Editor: David G.W.Birch
Australian Editor: Mary- Anne Goldsworthy
UNCTAD Editor: Carlos Moreira
Eastern Europe: Will Keenan
Southern Europe: Mauro Cipparone

This year we hope to broaden our geographic and topic scope. My
"New Years' Resolutions!" are to attract more material from Asia
and from the financial institutions.

I have been working in Europe the last year and this has helped
broaden my rather narrow North American perspective. I now
realize it was Europe who started the WEB, whereas North America
can only take credit for E-mail and ARPAnet (the original U.S.
Department of Defense "Internet").

Phase One: E-mail and Internet has happened. Phase Two: the WEB
has happened.  We are now on to Phase Three: beyond the WEB.
Where will this lead?  I have some ideas, but my "New Years'
Predictions" tend to be about as valid as my New Years'
Resolutions.

Let me go out on a limb and predict that in Phase Three you will
be hearing a lot about ExtraNets which are  sort of a "private
club intranet." Banking is an obvious sector to be heavily
involved in ExtraNet use.

Prediction two: Europe is ahead in smart cards by at least a
year. 1997 will see North America get caught up, but Asia will be
where smart cards will be used for banking and other uses. I just
came from Hong Kong where no less than three major studies
are underway.

Oh well.. Why stop at two predictions?  My third is that Europe
and Asia will get caught up on the Internet. The Internet is
looked upon as a North American, English-language technology.
This partly explains why Europe (well parts of Europe) are a year
year behind North America on Internet implementation.

So much for my first (and more than likely my last) set of
predictions.  Unpredictable events and people always make
nonsense of our "logical" ideas! One thing is certain.  It will
be an interesting year in Electronic Commerce and Banking.

Seasons Greetings !


=======================
NOTICES
=======================

Call for Papers: Financial Cryptography '97
February 24-28 1997, Anguilla, BWI

Financial Cryptography '97 (FC97) is a new conference on the
security of digital financial transactions.  The first meeting
will be held on the island of Anguilla in the British West Indies
on February 24-28, 1997.  FC97 aims to bring together persons
involved in both the financial and data security fields to foster
cooperation and exchange of ideas.

For more information see URL
http://www.cwi.nl/conferences/FC97/call.html

*******

PROSPECTUS:
Multi-Client Research Study of Web Transaction Processing

A special proprietary study based on nth random sampling of a
30,000 site base will focus on sites that have mastered skills
and techniques required for successful, engaging Web commerce.
Evaluating mature websites in important product / service
categories will reveal the critical success factors that are
creating the Online future.

Very large sample sizes, combined with random website sampling
techniques will provide enhanced data on Web trends and
sufficient data to compare data by business sector.
Major Web Vendors, Trade Associations and Software and Service
Providers will find this summary of best practices useful in
planning and designing Major Web Vendors, Trade Associations and
Software and Service Providers will find this summary of best
practices useful in planning and designing transactional systems.

For more information, contact Harold Wolhandler, Director of
Research, ActivMedia, Inc, www.activmedia.com, (603) 357-0721
[direct line] or hwolhandler@...



=======================
The Legal Report: U.S. Advisory Panel Meets on Key Management
Infrastructure
-- http://www.arraydev.com/commerce/jibc/9701-2.htm
=======================
>From Richard L. Field
Contributing Editor, JIBC Legal
Email: field@...

Richard Field is an attorney and legal consultant in Cliffside
Park, New Jersey, U.S.A.  He chairs the Electronic Commerce
Payment Committee of the American Bar Association.
**************
In this month's Legal Report I reprint an excellent and
insightful meeting report by John A. Thomas, first posted on
9 Dec 1996 to the cyberia-l list.   The meeting was the first of
the Technical Advisory Committee to develop a U.S. Federal
Information Processing Standard for a federal key management
infrastructure.  The meeting report hints at the
growing rift between the positions of U.S. government and
industry in defining the appropriate limits of an encryption key
recovery system for storage and/or communication of messages.

The meeting came three days after a notable letter was sent by
the Business Software Alliance to U.S. Vice President Al Gore,
criticising the U.S. government's new encryption export policy.
The Alliance, a leading software industry group whose members
include IBM, Microsoft, Apple Computer, Novell, and Adobe, backed
away from its initial support of the Clinton administration's
policy.  It claimed that the government backtracked between its
1 Oct 1996 announcement of the new policy and its 15 Nov 1996
Executive Order implementing further details of the policy.  More
fundamentally, the Alliance no longer supports key escrow or key
recovery systems for encrypted real-time communications, but only
for stored communications and data.  As you would assume, this is
a major problem for law enforcement.

President Clinton's new policy shifts administration of
cryptography exports from the U.S. State Department, under its
International Traffic in Arms Regulations and Munitions List, to
the Department of Commerce, under its Export Administration
Regulations.  Normally, such a move would signal an easing of
export restrictions.  However, the Executive Order imposed a
number of strict new conditions on the Department of Commerce,
including a requirement that the exporter will work to institute
satisfactory key recovery techniques as a condition to obtaining
export approval.

Under ordinary circumstances (as set out in the U.S.
Constitution), these types of changes would require the approval
of the U.S. Congress.  Congress, however, permitted the Export
Administration Act to expire in 1994, and since then the
President has unilaterally extended enforcement of the Act's
provisions on an emergency basis, under authority granted by
Congress to the President under the International Emergency
Economic Powers Act.

We have not yet heard the last word on U.S. cryptography export
policy. The U.S. Congress has shown signs of rebellion against
the President's recent unilateral actions, and will likely begin
serious debate in early 1997.  And a draft report by the
President's own top advisors, entitled "A Framework for Global
Economic Commerce", reportedly advocates a free market
approach that conflicts with existing Administration cryptography
policies.

Further documents from the FIPS Advisory Panel meeting are
available at <http://jya.com/fipsmeet.htm>.



==============================
Internet Stock Exchange Survey
--http://www.arraydev.com/commerce/jibc/9701-3.htm
==============================
By Alan Majer
The author is a McGill MBA graduate with an interest in
electronic commerce on the Internet.  He can be reached at
networks@... or by phone in Montreal, Canada at (514)
282-7692.  This document may be freely distributed as long as the
author is credited.
******************
  Since the Internet IPO of the Spring Street Brewing Company
earlier this year many have become intrigued by the possibility
of issuing stock using the Internet.  The relaxation of SEC
regulations and the appearance of several companies supplying
Internet IPO services holds promise for businesses hoping to
conduct an Internet IPO.  Other innovators plan on pushing the
boundaries of electronic commerce on the Internet even further.
Within the next year we may see the appearance of the world's
first fully-functional Internet stock exchange, this will
be the true test of what electronic commerce on the Internet can
offer.

This survey was designed to explore the concept of Internet-based
stock exchanges by measuring investors' opinions on issues
ranging from Internet security to their willingness to use an
Internet-based stock exchange.  In total the data from 42
respondents was collected, 22 respondents were MBA students while
the remaining 20 respondents were collected from the Internet.
Respondents from the Internet were recruited primarily through
newsgroups and mailing lists.  Because all
respondents for this survey are self-selected the survey data
cannot be assumed to be a representative sample of either
Internet users or the investment community.  All data were
collected during the month of October, 1996.  ...

Conclusion

Overall, results seem to suggest a very bright future for
Internet stock exchanges.  A number of advantages possessed by
Internet stock exchanges prompted many to suggest that Internet
exchanges would someday compete directly with the world's largest
conventional exchanges.  However, one issue, security,
complicates this picture somewhat.  Major concerns
about security, fraud, and hackers mean that the Internet
commerce is perceived as off-limits for many respondents.  While
time-tested systems with a track record will satisfy some, the
security issue is likely to delay widespread use of Internet
stock exchanges for some time.  Education and an explanation of
security technologies may speed the process of acceptance.
Lastly, there are a number of features people would like to see
in an Internet stock exchange.  Convenience is the norm, and
respondents prefer access to a wide range of stocks (from
other exchanges), currencies, and other means of executing
trades.  If the results of this survey are any indication,
Internet stock exchanges will soon fill a valuable niche in the
area of electronic commerce on the Internet.



========================
Electronic Commerce in Java
-- http://www.arraydev.com/commerce/jibc/9701-4.htm
========================
By Qusay H. Mahmoud
Email: k3is@...
The author is a graduate student in Computer Science at The
University of New Brunswick, Saint John campus, Canada.
Currently, he is working on his masters' thesis which
concentrates on the Web and Java. His most recent article,
Sockets programming in Java, was published in December's issue of
JavaWorld Magazine.
*****************
  The exponential growth of the Web has offered new opportunities
for doing commerce on the Web. However, commerce on the Web has
been held hostage to security concerns. This article reviews
the Java Electronic Commerce Framework which uses a security
model based on digital signatures to enable application
programming interfaces to authenticate their caller.

The Java Electronic Commerce Framework - JCEF

As commercial use of the Internet grows, the need for a secure
mechanism for conducting commercial transactions become greater.
Java creates ways to enhance electronic commerce beyond
credit card purchasing. Java adds components to support emerging
technologies of sophisticated payment instruments such as Smart
cards, electronic cash, and electronic checks. The Java
Electronic Commerce Framework (JECF) - a secure, extensible
framework for creating financial applications on the Internet, is
Java's solution for the growing need for a secure mechanism for
conducting transactions on the internet.

...The JEFC Framework sounds like a great step forward towards
Secure Electronic Commerce and hopefully when it is released to
the public it will increase the volume of commercial
transactions on the Internet. Once the JEFC is available, all is
needed is a very high speed network to handle all the
transactions. :-)

There is so much information to be covered about The Java
Electronic Commerce Framework, and space doesn't allow all the
information to be covered in just one article, so please web to
the following URLs.

http://www.javasoft.com/products/commerce/
-- The Java Commerce Homepage
  http://www.javasoft.com/products/commerce/doc.white_paper.html
-- The Java Electronic Commerce Framework
http://www.javasoft.com/doc/Overviews/java/java-overview-1.html
-- The Java Language  - An Overview



===========================
How Do We Protect the Civilian Infrastructure?
-- http://www.arraydev.com/commerce/jibc/9701-5.htm
========================
By Stewart A. Baker and Paul R. Hurst
URL: www.steptoe.com
Email: sbaker@...
Steptoe & Johnson LLP
**************
  Threats to the national critical infrastructure are much in the
news.  Is there a cyber-terrorist currently plotting a strike on
America's power companies?  Many argue that right now there is no
active information warfare threat.  But others, including many
close to the Clinton Administration's thinking, argue that the
absence of a threat is a temporary thing, that the nation's
enemies will sooner or later be tempted by the "naked
vulnerabilities" of our increasingly networked infrastructure.

To remedy these vulnerabilities, President Clinton
created the Commission on Critical Infrastructure Protection
(CCIP) by Executive Order Number 13010 in July 1996.  This
Commission's task is to evaluate the current physical and cyber
threats to the civilian infrastructure (e.g., power companies,
banking, telecommunications) and to develop a national security
strategy for this infrastructure by July 1997.  Although the
President has yet to officially appoint the Chairman of the
Commission, Robert Thomas Marsh is the expected nominee; he and
most of the Commissioners have already begun working
towards meeting the Commission's tight deadline.  ...

Conclusion
CCIP is an important step in recognizing the need to
address the vulnerabilities of the civilian infrastructure.
Importantly, CCIP is both a public and private commission
consisting of Commissioners from the government and industry.  To
address these issues (and others), there must be a consensus
between government and industry whereby both the civilian
infrastructure and American businesses are adequately protected.



=============================
Untraceable Payments, Extortion, and Other Bad Things
-- http://www.arraydev.com/commerce/jibc/9701-7.htm
========================
By Tim May
W.A.S.T.E.: Corralitos, CA
Email: tcmay@...
*************
  I've noticed a few references in the press, and maybe on this
list, to the idea that because some bad things may be done with
untraceable payments (true Chaumian digicash, not the watered
down version offering only one-sided untraceability), that
governments will "not allow" such untraceable payments.

This won't work. So long as there is at least *one* such service,
anywhere in the world....

(See the Web article for details of the "criminal" activity Tim
has in mind.)

...So, even if "Mark Twain Bank" and "Bank of America," and,
indeed, the rest of the U.S. banking establishment eschews
untraceability, the presence of such services anywhere in the
world is enough to make the act described workable. And that
"anywhere in the world" can, as I mentioned earlier,
encompass the various underground banking systems already widely
in use (Tongs, Triads, chop marks, etc. in Asia, and presumably
similar systems elsewhere). Or it could encompass fairly
conventional banks which offer such untraceable routes for a
premium. A $5,000 commission on top of the $25,000 transfer would
make a lot of the world's banks sit up and take notice. And so
long as they were not told what the fund transfer was all
about --(The Victim) is unlikely to gain anything by telling
them--they have plausible deniability and moral comfort.

Yes, this has all been obvious for a while. (The mapping of the
scenario I describe to a specific digital cash system depends of
course on the nature of the system, on cryptographic protocols,
and so forth.)

And I surmise that the U.S. Government must have realized this.
And realized that only by _completely quashing_ all such
untraceable payments systems can the goals of stopping such "bad
uses" be met.

Unfortunately for them, and unfortunately for the victims of such
crimes, no such worldwide stoppage of all such systems seems
possible, even with draconian police state measures. There are
just too many interstices for the bits to hide. And too much
economic incentive for some persons or banks to offer such funds
transfer methods.

Fortunately for the bulk of us, the likely number of deaths and
economic losses from such crimes of kidnapping, extortion, and
even murder for hire, is still likely to be vastly lower than the
number of deaths caused by powerful central governments enriching
themselves and their cronies with foreign wars. Not to mention
the deaths in the Drug War, the lives wasted in other
interferences in private behavior, etc.

This is why I look forward to this Brave New World of fully
untraceable communications and fully untraceable economic
transactions.



==================================
Hettinga's Best of the Month
-- http://www.arraydev.com/commerce/jibc/9701-8.htm
==================================
Submitted by our Contributing Editor Bob Hettinga as his choice
of best article of month found on Internet.  </i>

Robert Hettinga
Email: rah@...
*******
  Hard to Tax Scenario

By Hal Finney hal@...

(Hal starts off by noting that he is commenting on a posting to
another list by Robin Hanson (hanson@...), inventor
of the Idea Futures prediction market, who suggests a scenario
and poses some questions about the potential to avoid taxes by
living in "virtual reality.")

One difficulty I find with this scenario is its science fictional
nature. It is hard for me to consider details about the life of a
doctor who works via VR.  Also, if we are already in a situation
where 30% of people are avoiding taxes there will certainly have
been major changes in society, but I don't know what they will
be.  This makes it hard for me to focus on the issues specific to
Ann's anonymity.  However I do like Robin's choice of a concrete
and vivid example like this.

... We had some interesting posts in an earlier discussion
on this list describing the situation in Italy, where apparently
tax avoidance is raised to a higher degree than in the U.S.  It
sounded like it has the approximate moral status that speeding
does here, a minor infraction which almost everyone does some if
not all of the time. In some sub-cultures no doubt the tax
avoidance rate would be even higher.

In such a society Ann may not have to care that much about
keeping her secrets, as long as she doesn't have too high a
profile at tax time.

...The other part of this scenario, where Ann interacts with her
co-workers via fake faces, does seem disturbing.  I could
imagine, though, that this might be common in such a culture.
Maybe everyone pretties themselves up when on the videophone.  If
there is widespread understanding that most faces are at least
somewhat false, then perhaps going all the way to a completely
faked up face would seem more acceptable.  But to someone
from my generation it will be hard to accept.



================================
The Impact of IETF's EDI over Internet
Recommendations on World-wide Electronic Commerce
-- http://www.arraydev.com/commerce/jibc/9701-9.htm
==================================
By Rik Drummond
Chair, IETF "Internet EDI over Internet" Workgroup
Email: drummond@...
***************
  Where is Electronic Commerce?  The press has hyped electronic
commerce ever since the WEB took off three years ago. An IETF
"Internet EDI over Internet" Workgroup (IETF EDIINT WG), with
over 400 national and international members, is addressing how to
transmit EDI documents, between businesses, in a secure and
reliable manner. Our objective is: Secure, International,
Inter-operable EDI over Internet -- Now!

... Conclusion

The IETF EDIINT Workgroup is recommending the technical standards
to facilitate interoperable, secure, world-wide, EDI.

CommerceNet is sponsoring a test of these recommendations by over
10 vendors. Finally we all wait on various governments to allow
encrypted data to across their boarders in a uniform manner so
that world-wide, secure electronic commerce will be realized.



====================================
Advice on Electronic Commerce Programs for Small to Medium-sized
Enterprises
-- http://www.arraydev.com/commerce/jibc/9701-10.htm
==================================
>From Contributing Editor Mary-Anne Goldsworthy
Email: cec@...
URL: http://www-mugc.cc.monash.edu.au/cec/index.html

Mary-Anne Goldsworthy is Executive Officer of the Centre for
Electronic Commerce at Monash University, Gippsland Campus,
Churchill, VIC 3842.
*************
  The CEC is a national independent consulting, training and
research centre for electronic commerce services to assist
industry and government, and specifically SMEs (small to medium
enterprises).  The CEC was commissioned by the Australian
Department of Industry, Science and Tourism (DIST)
to conduct a consultancy to examine and provide advice on
electronic commerce programs for small to medium sized
enterprises (SMEs).

Small and medium enterprises (SMEs) play a major role in the
Australian economy, making up 96% of all enterprises in the
private non-agricultural sector and account for more than 56% of
private sector employment.  As a whole they currently contribute
most of the private sector employment growth in Australia.

This report combines a summary of recent extensive research
already performed by a number of organisations in the last 12
months, together with interviews held with major SME
representative bodies, to present an up-to-date picture of SME
involvement in Electronic Commerce in Australia.  It examines key
elements, impediments and initiatives underway, general trends
and future scenarios of electronic commerce for SMEs, and
extracts essential themes.

...Recommended Strategies

Strategies for encouraging SMEs to embrace electronic commerce
technologies for their business activities in a co-ordinated way,
should include:
* selection of suitable communication channels to address the
need for information, education and training;
* provision of incentive to be involved (business need);
* a focus on ease of implementation and demystification of the
technology;
* leadership roles assumed by both government and private
sectors.

EC Programs designed for SMEs should recognise the following:
* difference in size and motivation of SME (SME category);
* difference in electronic commerce technologies and business;
application of those technologies;
* the significance of SME business
networking;
* need for flexibility of training delivery;
* need for cooperative arrangements between government and
private sector centres of expertise.

...
CONCLUSION

There is a great deal of enthusiasm in the private sector amongst
industry associations and others to be involved in any programs
that Government may initiate to stimulate the implementation of
electronic commerce technologies for the benefit of SMEs in
Australia.

Using the Internet for electronic commerce will perhaps have the
greatest impact for SMEs because of its low cost, universal
access on a global basis and the fact that it is based on non
proprietary standards.

The time is now ripe for the exploitation of electronic commerce
for SMEs, particularly following the selection of the strategic
partner for the Commonwealth Electronic Commerce Service (CECS).

In the first instance SMEs need to be introduced to electronic
commerce with simple Email and access to the WWW for business
information and the marketing of their goods and services,
supported with appropriate education and training.

Other forms of electronic commerce (including EDI) could be
implemented over the Internet according to the justified business
needs of both the Government and private sectors.



===========================================
Over the Water -- The View from the UK
-- http://www.arraydev.com/commerce/jibc/9701-12.htm
==================================
By David G.W. Birch
Director, Hyperion
Email: daveb@...
URL: http://www.hyperion.co.uk">http://www.hyperion.co.uk
*********
  COLUMN FIVE: BYE, BYE BANKNOTES

Banknotes and coins may vanish sooner than you think.

While the potential impact of electronic cash (ecash)
technologies on the retail banking sector is significant, its
worth taking the time to think about the impact of ecash on
central banks which may be even more important in the longer
term.

The Bank of International Settlements (BIS), based in Basle, has
recently published two very interesting reports. Both of these
reports take ecash very seriously and work on the assumption that
it is coming out of R&D laboratories and into the mass
market very quickly.

The first report, The Security of Electronic Money, is good news
for the ecash world as it concludes, broadly, that the security
of electronic purse schemes is adequate to meet the concerns of
central banks. A Task Force on the security of electronic money
was established in October 1995 after a workshop involving the
G10 central banks to provide a preliminary assessment of the
technical aspects of electronic purse products: stored
value products such as Mondex as opposed to value access
products such as the familiar credit card. The report looks at
the risks posed by both deliberate criminal activity and by
errors or malfunctions. In both cases, the Task Force found that
the security measures associated with the electronic money are
better than traditional forms of retail payment.

They also deal with a common criticism of ecash schemes that they
will somehow increase money laundering by observing that the
movement and management of anything other than very small amounts
of ecash will require some degree of involvement or collusion by
a financial institution: in other words, it's business as usual.

The second BIS report, The Impact of Electronic Money on Central
Banks, again looks at the emergence of mass market stored value
electronic purse schemes. It considers the various factors that
might influence the evolution of ecash and considers what these
mean for the central banks of the G10 countries. Interestingly,
the report notes that the impending demise of (at least some of
the) national currencies in the European Union (EU) might be a
significant stimulus to the development of ecash schemes aimed at
consumers because of the cost and inconvenience associated with
replacing all of the notes and coins in circulation.

...E-cash has ceased to be a fringe technological innovation and
now deserves serious consideration at every level. Whatever
people might feel about notes and coins, the fact remains that
they are costly and inefficient: it is the fact that ecash is
cheaper to store and transmit than specie that means it will
replace it sooner than many people imagine.



=============================
The Bundesbank and Electronic Cash
-- http://www.arraydev.com/commerce/jibc/9701-13.htm
=============================
By Christopher Kuner
Attorney-at-Law, Gleiss Lutz Hootz Hirsch & Partners, Frankfurt,
Germany
URL: http://ourworld.compuserve.com/homepages/ckuner
Email: ckuner@...

Christopher Kuner is a US attorney-at-law with the German
corporate law firm Gleiss Lutz Hootz Hirsch & Partners in
Frankfurt. He is a frequent author and lecturer in Germany and
abroad on legal aspects of the Internet, and practices in the
areas of electronic banking, cryptography, Internet
regulation, and telecommunications law.
*********
The German banking establishment is starting to pay increasing
attention to the legal and regulatory problems posed by Internet
payment mechanisms such as "electronic cash." Up to now, interest
in the subject in Germany has been more theoretical than
practical, owing to the cash-based nature of the German financial
structure, the halting acceptance of Internet commerce among the
German business community, and the German public's scepticism
toward new types of payment schemes.

On November 28, 1996, Bundesbank director Edgar Meister delivered
a speech in Frankfurt which provides the Bundesbank's most
detailed and authoritative statement yet on electronic cash and
Internet payment issues (an English translation of the speech is
available on the Internet at
http://ourworld.compuserve.com/homepages/ckuner Meister's
comments demonstrate the cautious attitude taken by the
Bundesbank in this area.

...The Bundesbank is concerned that increased use of such schemes
could cause it to lose control over traditional techniques for
influencing the German economy, and might call for measures such
as incorporating electronic money into minimum reserve
requirements or, as a last resort, the monopolization of their
issuance by the Bundesbank. Meister also expresses concern about
the issues of security, liability, and money laundering, and
indicates that an upcoming amendment to the German banking
law will result in the issuance of what he calls "card money"
(e.g. prepaid cards) and "net money" (e.g. digital cash) being
limited to banks. Finally, Meister expresses some
scepticism about the extent to which such electronic payment
methods are likely to find acceptance among the public as
substitutes for cash.

The warnings contained in Meister's speech demonstrate the
Bundesbank's traditional caution in this area, but raise
questions about the effectiveness of the restrictions which
Meister discusses. For example, given that there is no effective
way for national governments to control message flows on the
Internet, it is not clear how restricting the issuance
of electronic cash in Germany to chartered banks could be
enforced; indeed, attempts at such enforcement on an
international scale would likely lead only to insoluble
jurisdictional conflicts.

Much of Meister's confidence in the
government's ability to enforce financial regulation on the
Internet is also based on a belief that "net money" will
inevitably be converted back into traditional national
currencies, which may or may not be true, depending on how
quickly and extensively such electronic payment mechanisms are
accepted. And while Meister's statements regarding minimum
reserve requirements and the monopolization of electronic cash by
the German government may only have been hypothetical cases which
will likely never come to pass, the fact that he mentioned them
at all has understandably unsettled a number of financial
institutions potentially interested in offering such payment
systems in Germany.



===========================
Critique on the 1994 EU Report on Prepaid Cards
-- http://www.arraydev.com/commerce/jibc/9701-16.htm
=============================
By Ian Grigg
November-December 1996.
Email: iang@...

Contributing Editor Robert Hettinga asked Mr. Grigg for a
brief summary of his critique of the 1994 EU report on Prepaid
Cards.  Ian took this as a sign that the critique needed an
abstract, which he submitted as follows.  The entire critique is
at http://www.systemics.com/docs/papers/1994_critique.html
************
  Abstract: The European Union report of 1994 reserves the issuance
of Prepaid Cards to banks. Comments have indicated that the
conclusions of this report should be expanded to include Internet
cash, and it is believed that a committee under the auspices of
the EMI has been given that mission.

This approach would be valid if the conclusions in the 1994
report were valid, and there was sufficient relationship between
the prepaid card and Internet cash to support this extension. It
is argued that neither is the case, and thus there is little
validity in simply extending the 1994 report. Rather, a fresh
approach is called for with respect to Internet cash.

With due consideration given to the pressures upon the
institution of central banking, it is argued that only a policy
of minimal regulation is likely to be structurally practical.
Thus the imperative is on establishing a dialogue with the new
financial intermediaries, and encouraging the development of
simple, open and transparent structures suitable for public
monitoring.

In the event of attempts to stifle financial innovation for the
sake of control, authorities will be ignoring the changing face
of the intermediation industries, and rightly or wrongly, are
likely to build a structure at odds with the future. It is argued
that, whilst there is little chance of this structure surviving
in the long term, its construction and downfall is likely to have
negative effects in the medium term for Europe and European
industry.

==============================
End of JIBC part 1

Journal Of Internet Banking And Commerce
Vol. 1, no. 1, January 19, 1996


=================
TABLE OF CONTENTS
=================

JIBC Announcement
Editorial
Administrative Notice
Referred Articles and Columns:
   1. The Legal Report (by Rich Field)
   2. The Citibank Affair:  A Purely Russian Crime? (by Nahum
       Goldmann)

Articles placed on the JIBC Web site
  (http://www.arraydev.com/commerce/JIBC)
   1. Security: Contributing Editor Robert Hettinga (by David Murray)
   2. Asia Pacific: (Column by Jo-Anne Fisher)
   3. United Kingdom Report: (Column by Dave Birch)
   4. European Report: (Column by Mauro Cipparone)
   5. Innovation Report: (Column by John Gehl)


=================
JIBC ANNOUNCEMENT
=================

Journal of Internet Banking and Commerce

The goal of this publication is to inform executives, professionals,
entrepreneurs, government personnel and other key players on
principal developments and trends in the rapidly evolving electronic
commerce area all over the World.  This free online Journal is a way
to keep in touch, to share information, and to establish business
contacts in the area of electronic commerce and banking
on the Internet.

The Journal of Internet Banking and Commerce (JIBC) is primarily
devoted to important announcements, refereed original articles, guest
columns, significant feature presentations from other publications,
as well as survey, reviews, and letters to the editor. We will
try to keep away from technical discussions and leave them to other
specialized lists.

Our Journal will be issued monthly and will limit material to the
absolute minimum.  We are definitely looking for quality, not
quantity.  We will be editing, filtering and summarizing, to provide
our busy readers only with the substantial information.  We will do
this by selecting key items to include into the email portion of the
Journal.  Larger articles and columns, as well as background
information, will be placed on our Web site
(http://www.arraydev.com/commerce/JIBC/) with the appropriate
notification in the email part.

Join our Journal and learn about the trends in electronic commerce.
We promise not to get too" techie". Not too many fights but lots of
good discussion.  We need your articles, your email, your
contributions and discussion. We would like your feedback either to
Gordon Jenkins, the Editor, or Nahum Goldmann.  You can email us
directly or use the Questionnaire that we keep on the JIBC Web site.


=========
EDITORIAL
=========

The purpose of this Journal is to be THE Journal for developments in
Electronic Commerce and Banking.  We will keep the Journal focused on
the key issues and will select as our lead articles what we consider
the issues each month.  Your comments, feedback, by way of filling
out the Questionnaire, or Letters to Editor, would be appreciated.

We would also like your contribution if you have an interesting
article, or if you come across one that you would like to share with
us, please send it to me.  We plan on printing the "cream of the
crop". Most of our contributing editors have columns and newsletters
of their own and are selecting for you in this Journal what they
consider the most important article they've run across during the
last month in their Journal.  For example, Mr. Gehl and Mr. Hettinga
have sent along their pick of the month.

Other areas to be published are "hot topics" that you should be aware
of by way of trend or recent development.  That is why I have chosen
Richard Field's and Nahum Goldmann's two articles this month for the
email's portion of the Journal.  I consider the Legal and Security
aspects of Internet banking and commerce to be the two most important
issues that must be addressed right now.

The developments in other regions and other areas can be found in the
Web portion of this month's edition of the Journal.  For example,
Jo-anne Fisher has an excellent article on developments in the
Australian area that deal with Legal.  There are also interesting
articles on the U.K. by Mr. Birch and Europe by Mauro Cipparone.

In the following months Journals, we plan on adding more areas, both
geographic and subject. Please read and enjoy and give us your
feedback.  We want to, and will, make this the best electronic
commerce journal available on the Net and the one you will look for
every month.

The next issue will feature highlights from two recent World Bank
reports concerned with the technologies and procedures which,
together, are reshaping the way the world does business, especially
in international trade.  Generally referred to as "trade facilitation" these
practices are
being applied and developed in many countries and industries.  Their application
is
broadly agreed to lead to benefits which significantly outweigh investments; one
country claims annual benefits in excess of 1% of GDP.

The reports offer essential information for decision makers promoting
better trade practices and examine the costs, benefits and best
practices in applying information technology in trade facilitation.
Article will be written by Robert Schware, Senior Informatics
Specialist, Telecommunications & Informatics Division, Industry &
Energy Department, World Bank.

Also in the February edition we will have a very interesting article
from Steve Rollwage of the Canadian Government on "What to consider
before embarking on your electronic commerce adventure".

Enjoy!

      Gord Jenkins
      Editor


=============================
REFEREED ARTICLES AND COLUMNS
=============================

----------------
The Legal Report
----------------

Richard L. Field, Esq.
field@...

---------------------------------------------------------------------
Mr. Field is an attorney and legal consultant in Cliffside Park,
New Jersey, U.S.A.  He is a member of the ABA Science and
Technology and Business Law Sections.  He participated in the
drafting of the ABA Digital Signature Guidelines discussed in
this report, and co-chairs its Electronic Commerce Payment
Committee.
---------------------------------------------------------------------

It is fitting that I am writing this first report on legal and
Internet banking and commerce issues on Christmas day.  For
some, this day is about new beginnings.  The Journal of
Internet Banking and Commerce, and the information era, are
also standing at the cusp of something fundamentally new, but
not yet quite defined.

Others have long seen this season for its commercial
possibilities. Financial reports on our collective shopping
purchases this month will be used to diagnose the economic
health of entire countries, and serve as the basis for legislative
and fiscal policy agendas throughout the upcoming year.

So I thought I would start with another mainstay of the season,
the year-end recap.  In particular, this report will review some
of the past year's activities within the American Bar
Association (ABA) to study and promote electronic commerce.
It will be a good starting-off point for future legal discussion.

For those of you who are unfamiliar with it, the ABA is a
private, voluntary membership association of U.S. attorneys.
Others can join as associate members.  Despite its
unincorporated status, it takes a leadership position on many of
the legal issues of the day.  Its reports and views have long
been used by legislators, attorney practitioners and others.

The ABA is huge and bureaucratic.  Most of its membership
comes from attorneys in the fifty state bar associations.  But,
separately, it is also composed of numerous special interest
committees, sections and divisions. Among these sub-groups,
the Section of Science and Technology and the Business Law
Section have taken notable leadership positions in developing
the law of electronic commerce.

The Business Law Section has been studying the current U.S.
commercial law, much of which is embodied in the Uniform
Commercial Code (UCC) and the laws of evidence, and
recommending changes necessary to enable electronic
commerce. Some of these efforts include:

(i) a rewrite of Article 2, the law of sales, to cover software
        licensing;
(ii) the possible elimination of the 300-year-old Statute of Frauds,
        which requires certain contracts to be "in writing"; and
(iii) a model bank-customer agreement for commercial electronic funds
        transfers, which follows the basic structure of the 1991 U.S.
        statute in this area, Article 4A.

The Section of Science and Technology has been looking at
the technical side of electronic commerce law.  Its Information
Security Committee has recently released draft Digital
Signature Guidelines.  A three-year collaboration of leading
legal, cryptography, business and government experts, the 101-
page Guidelines are available for download from the Electronic
Commerce and Information Technology Division's webpage at
"http://www.intermarket.com/ecl".  Bound paper copies are
available for US$15 from the Section of Science and
Technology of the American Bar Association, 750 North Lake
Shore Drive, Chicago, Illinois 60611, U.S.A. Telephone:
(312) 988-5599; electronic mail:  sciencetech@....
The Information Security Committee worked closely with the
State of Utah, which in May 1995 enacted the world's first
Digital Signature statute.

The Division has also worked to develop a new U.S. legal
specialty, which it calls the "cybernotary".  Based on
European/Canadian/Mexican notary models, the cybernotary
would assume the risks of party identity in an international
electronic commerce transaction, while certifying the validity
and enforceability of the transaction.  There has been
substantial collaboration in this endeavor with the International
Union of Latin Notaries (UINL).  The U.S. Council for
International Business (USCIB), which is the U.S. arm of the
ICC, has recently created a Cybernotary Association to carry
out these efforts.  Both the Guidelines and the Cybernotary are
based on X.500 and X.509 standards for Public Key
Infrastructure and certification authority certificate and key
management.

Finally, the Electronic Commerce Payment (formerly Financial
EDI) Committee has been discussing, through its committee
listserv, fundamental legal issues in electronic commerce
payment:  from the creation of money, to privacy/anonymity,
money laundering, export of encryption, and escheatment of
abandoned property.  It has published a model financial EDI
trading partner agreement (also available through the ABA),
and is working on an equivalent model agreement for the use
of debit transfers in EDI.

The ABA will continue to work at the forefront of these
evolving issues. Stay tuned for details.  And have a good year,
everyone.


---------------------------------------------
The Citibank Affair:  A Purely Russian Crime?
---------------------------------------------

Nahum Goldmann
ARRAY Development
Nahum.Goldmann@...>
http://www.ARRAYdev.com/

---------------------------------------------------------------------
Nahum Goldmann has been employed as a manager, scientist and lecturer
in leading industrial high-tech firms and academia.  Mr. Goldmann has
published several critically acclaimed books that deal with knowledge
transfer issues.
---------------------------------------------------------------------

Novoye Russkoe Slovo (NRS), a NY-published newspaper which acclaims
itself as the largest Russian-language daily outside of the x-USSR,
published an engaging account of the so-called Citibank Affair in
September 1995.  A fairly large article ("Purely Russian Crime..."
NRS, Sept. 15, 1995, pp. 13-14) was written by Vladimir Strizhevsky
but was actually based on the original investigative materials
submitted by several contributors from Moscow and St. Petersburg, as
well as from NY, London, Brussels and other world financial capitals.

Undoubtedly, NRS have done quite a good job in clarifying and
illuminating the background of the Citibank Affair.  For whatever
reasons, the English-language media have not covered the background
of Russian participants that well.  However, an expert in
electronic banking and commerce on Internet might find utterly
fascinating the very minute details of this complex crime scheme that
involved many people and spread across several continents.

The story at NRS starts at the end of August, 1994 in Tel-Aviv.  A
certain Alexei Lachmanov, a Georgian national and a holder of a false
Greek passport to the name of Alexios Palmidis, had been arrested by
Israeli police when he tried to withdraw nearly US$1M.  The funds in
question were electronically transferred to five Israeli banks from
Invest-capital, an Argentinean subsidiary of the Citibank.  The
Israelis had been tipped by the Citibank through the FBI with the
information that all the money transfers had been done with the
illegal use of Invest-capital's own secret codes.

The subsequent multinational investigation has shown that it was a
leading St. Petersburg's, Russia computer expert Vladimir Levin who
was able to conduct numerous electronic transfers from several
Citibank's subsidiaries in Argentina and Indonesia to various
financial institutions in San Francisco, Tel-Aviv, Amsterdam, Germany
and Finland.  According to NRS's speculations, Mr. Levin's succeeded
so well because, in addition to Citibank's own electronic cash-
management hub in NY, he was also able to crack down the electronic
defense of several SWIFT's branch offices in the third-world
countries.  SWIFT, a secretive Belgium-based electronic
telecommunication consortia of World-leading banks, is primarily
involved in mutual settlement payments amongst its members.

On the other hand, in the interview with an NRS correspondent V.
Kaminsky, Citibank's spokesman rejected the newspaper's version of
SWIFT's penetration.  Instead he claimed that Citibank knew all along
about Mr. Levin's infiltration, playing with him a sophisticated
multistep deception game.  Of course, the Citibank's face-saving
version of events sounds not that convincing, taking into account a
large number of uncontrollable players, a sizable amount of real cash
involved, multicontinental reach of the overall crime scheme and the
fact that the bank was ultimately unable to recover a substantial
chunk of its own money.

Not your ordinary self-taught hacker, Mr. Levin, 31, an aloof man and
a graduate of a prestigious Department of Applied Mathematics, was
considered somewhat of a computer genius in the St. Petersburg's
University circles.  The scheme started when Mr. Levin's
acquaintance, a Russian-American wholesale trader, asked him to
develop programming support for his international trading business.

According to Mr. Levin's university friends, the idea of breaking
into secure bank networks has been born somewhat spontaneously during
a purely technical discussion on the advantages and disadvantages of
different bank networking programs.  The debaters were members of a
St. Petersburg's group of elite computer experts that could best be
described as a local response to the Internet's own Cypherpunk
community.  I found it fascinating and somewhat ironic that the
infiltration plot had actually started as a low-key bet that the
Russian famous resourcefulness would triumph where the famed Yankee
ingenuity has already proven to be unsuccessful!

In the overall crime scheme, Levin was supported by as many as 30
collaborators, at least some of them computer experts.  Several of
his partners-in-crime, arrested in the U.S., Russia, Israel and the
Netherlands, were primarily involved in cash retrieval and
laundering, ultimately the most vulnerable part in any grand scheme
of electronic theft.  It is hardly a secret that most professional
bankers are routinely trained to contest, or at least report to
authorities, any suspicious withdrawal of large sums of cash.  Some
of the U.S. arrests have been successfully kept in secret for many
months, for the fear of alerting the criminals back in Russia.  Mr.
Levin himself was arrested in September 1995 in a UK airport, en-
route through that country.

Apparently, in the best tradition of this fledging industry, Citibank
have already used the lessons obtained from Mr. Levin's penetration
to beef up the security of its own electronic payment system.


========================================
JOURNAL OF INTERNET BANKING AND COMMERCE
========================================

Editor
Gordon Jenkins.
JENKINS AND ASSOCIATES INC.
Jenkins@...
http://www.infop.com/karoma,

Publisher
Nahum Goldmann
ARRAY Development
Ottawa, Canada
Nahum.Goldmann@...
http://www.ARRAYdev.com

Postmaster/Webmaster
Junhan Zhang
ARRAY Development
Junhan.Zhang@...


=====================
ADMINISTRATIVE NOTICE
=====================

This Journal is maintained and published courtesy of ARRAY
Developments of Ottawa, Canada (http://www.ARRAYdev.com/).  The
Publisher, Nahum Goldmann may be reached at:
   Nahum.Goldmann@....

Or you can reach the editor and moderator, Gord Jenkins of JENKINS
AND ASSOCIATES INC with any questions, comments or insights at:
   Jenkins@...
   http://www.infop.com/karoma,
   Tel. 613-723-1581,
   FAX 613-723-8938.

Please note that the mailing address for subscribe/unsubscribe is
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Note that ARRAY Development is neither responsible nor necessarily
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As our Journal is a moderated list, there is no "digest" facility.


=========
COPYRIGHT
=========

The Journal Of Internet Banking And Commerce is Copyright (C) 1996
by ARRAY Development, Ottawa, Canada.  All Rights Reserved.

Copying is permitted for noncommercial, educational use by academic
computer centers, individual scholars, and libraries.  This message
must appear on all copied material.  All commercial use requires
permission.


===========
CIRCULATION
===========

422 subscribers in  countries: 17 .ca; 200 .com; 33 .net; 23 .edu; 18 .uk;
16 .au; 4 .gov; 8 .org; 3 .jp; 8 .de; 1 .fr; 5 .nl; 8 .se; 1 .ch; 3 .it;
3 .us; 3 .fi; 5 .sg; ...


-------------------------------------------
End of JIBC Vol. 1, no. 1, January 19, 1996

Journal of Internet Banking and Commerce

Vol 2 no 2, March 1997 (Part 1 of 2)

Table of Contents:

1. Editorial: The Internet and a Standard Language
    (By Gordon Jenkins)
http://www.arraydev.com/commerce/jibc/9702-ed.htm

2. The Publisher's Corner (by Nahum Goldmann)
http://www.arraydev.com/commerce/jibc/9702-pub.htm


3. Articles Posted Since email Vol 2 No 1 dated January, 1997

*Complete texts of all articles are in the "Current Edition" on
the JIBC Web site at http://www.arraydev.com/commerce/jibc/

Feature Articles

==================
*Selected U.S. Legal Issues in Issuance of Electronic Money
(By John D. Muller)
http://www.arraydev.com/commerce/jibc/9702-17.htm

=================
*The Role of Check Images in Internet Banking: An Introduction
(By  Madeleine Tausk)
http://www.arraydev.com/commerce/jibc/9702-16.htm

=================
* The Internet Will Shake Banking's Medieval Foundations
(By Claus Nehmzow)
http://www.arraydev.com/commerce/jibc/9702-01.htm

==============
* Taxing the Internet: The Proposal for a Bit Tax
(By Arthur J. Cordell)
http://www.arraydev.com/commerce/jibc/9702-05.htm

==============
* Critique on the 1994 EU Report on Prepaid Cards (By Ian Grigg)
http://www.arraydev.com/commerce/jibc/9701-16.htm

=================
* The Internet: A Challenging Competitive Weapon for Improving
Industrial Companies' Performance is Emerging
(By George J. Avlonitis and Despina A. Karayanni)
http://www.arraydev.com/commerce/jibc/9702-10.htm

===============
* Wholesale Finance, A Model for Electronic Commerce
(By Davide Khalil)
http://www.arraydev.com/commerce/jibc/9702-13.htm

================
* From Cyberbucks to Cyberpunk: Tomorrow's Electronic
Commerce on Today's Mean Streets (By Walter A. Effross)
http://www.arraydev.com/commerce/jibc/9702-12.htm

================
*Data Warehousing, Electronic Commerce and Technological Learning:
Successes and Failures from Government and Private Industry and
Lessons Learned for 21st Century Electronic Government
(By Elias G. Carayannis)
http://www.arraydev.com/commerce/jibc/9702-14.htm

================


  From JIBC Contributing Editors

===============
*Over the Water -- The View from the UK
(By Contributing  Editor David G.W. Birch)
http://www.arraydev.com/commerce/jibc/9702-18.htm

===============
*The Consequences of Electronic Delivery Channels
on The Retail Banking Industry
(By Contributing Editor Mauro Cipparone)
http://www.arraydev.com/commerce/jibc/9702-15.htm

================
* Excerpts from INNOVATION
(from Contributing Editor John Gehl)
http://www.arraydev.com/commerce/jibc/9702-04.htm

==============
*Electronic Commerce for Small to Medium Sized Enterprises
(From Contributing Editor Mary-Anne Goldsworthy)
http://www.arraydev.com/commerce/jibc/9702-19.htm

==============
* Hettinga's Best of the Month
(from Contributing Editor Robert Hettinga)
http://www.arraydev.com/commerce/jibc/9702-03.htm

===============
* The GTPNET Phase II - Moving Contacts to Contracts
(By Contributing Editor Carlos Moreira)
http://www.arraydev.com/commerce/jibc/9702-01.htm

==============

!!!NEW!!! Case Studies

===============
* Canada Investment and Savings Lays Groundwork for Online
Savings Bond Sales
http://www.arraydev.com/commerce/jibc/9702-09.htm

===============


Conference Advertising

================
*Purchasing on the Internet -- International Quality and
Productivity Center http://www.arraydev.com/commerce/jibc/9702-07.htm

*Symposium on The Electronic Future of Cash -- The Washington
College of Law and The American University Law Review
http://www.arraydev.com/commerce/jibc/9702-07.htm#law
================


4. Administrative Notices

==========
END OF TOC
==========
***************************


1. Editorial: The Internet and a Standard Language

by Gordon Jenkins
Email jenkins@...
URL: http://www.gordjenkins.com

The first thing you will notice is our new logo. I would be
interested in your comments on the logo, the contents of the JIBC
and if you feel strongly about an article (or an editorial!), a
letter -- excuse me!! -- an Email to the editor would be
appreciated and published. Let a 1000 flowers grow. If you agree
with everything we publish, then we will have to reassess our
position!

I am commuting to Sweden and working in Canada and Nordic. Three
weeks Sweden and area, two weeks Canada/U.S, three weeks Sweden
and so on. This has been extremely helpful in my understanding of
different cultures and different approaches to technology in
commerce and banking.

The technology is the same (well, that's another story) but we
always forget about the people. Sabotage is not a military term.
Rather the root of the word is from when workers put their wooden
shoes or sabots into the gears of the machines that were
replacing them.

A common language is good also. The common language of the
internet is English. Is this good because it is a standard way of
communicating or is it bad because it threatens our national
identity with not only a foreign language English but also the
baggage this language brings?

Business culture, music, movies , video, violence..

Will there be a reaction to the Anglo-Saxon Internet?

Answer: Yes.

Can the Internet be stopped? Answer: No.

Check out the Web pages for the European countries, for Japan,
China and Cuba even. A lot of English there! The common language
of the Internet is quickly becoming English.

What do you think?

A good or a bad development or trend?

Excuse me. I have to go now. I have to make some more room in my
"Email to the Editor" column.

Gordon Jenkins
Editor, JIBC

P.S.  Please take a look at our new "Case Studies" Section and let
me know what you think. -GJ

*   *   *   *   *   *   *


2. Publisher's Corner

I am please to announce that later this month, the Journal of Internet
Purchasing will make its inaugural appearance. ARRAY Development is the
sponsor, as it is with our other successful publication, the Journal of
Internet Banking and Commerce.

The JIP Editor is William Christensen. In his other life Bill is a doctoral
candidate at Oklahoma State University in Marketing. He brings with him an
impressive background that includes five years of doctoral studies at
Michigan State University in Purchasing and International Business.  Bill
also manages and operates The Purchasing Station at
http://management.bus.okstate.edu/faculty/christensen/

JIP is envisioned as a leading edge publication which informs purchasing
professionals and executives on principal developments, benchmark practices
and future trends in the Internet purchasing practices of government and
business. We invite purchasing professionals, academicians and publishers
to submit important announcements, original articles, guest columns and
significant feature presentations. JIP will also welcome surveys, book
reviews and letters to the Editor.

JIP articles will be published on the Web at
http://www.arraydev.com/commerce/jip/ and abstracts/excerpts will be
distributed to email subscribers every two months. On the Web site you will
also find a Compendium for posting notices of innovative products and
services, and the IP-Forum for discussions of Internet purchasing issues. We
will
appreciate your assistance in identifying potential advertisers and sponsors
whose
support will allow us to maintain JIP as a free service for purchasing
professionals.

To subscribe, send email to jip-request@... with the word
"Subscribe" in the BODY of the message. An online subscription utility is
available through the JIP home page at http://www.arraydev.com/commerce/jip/

I believe JIP will provide an interesting and valuable service to
purchasing professionals who are exploring and developing effective ways to
use the Internet and Web-based tools. I look forward to your comments when
the first JIP rolls off the presses -- figuratively if not literally!

Nahum Goldmann
Publisher

*   *   *   *   *   *   *


3. ARTICLES: vol 2 no 2


==================
Selected U.S. Legal Issues in Issuance of Electronic Money
http://www.arraydev.com/commerce/jibc/9702-17.htm
==================
By John Muller
John Muller is Of Counsel with the law firm of Brobeck,
Phleger & Harrison LLP in San Francisco. His
practice focuses on bank mergers and acquisitions, new bank powers,
electronic commerce, corporate governance and general regulatory
advice. For more information on Brobeck, Phleger &
Harrison LLP, please see http://www. brobeck.com
********

TWO PRELIMINARY POINTS

A. Electronic Money is Not Cash
Electronic money functions as a medium of exchange, but it differs in two
very important respects from "cash" (i.e., Federal Reserve notes and
coins): it is not legal tender that must be accepted for the payment of
debts, and it is an obligation of a private company rather than of the
central bank. Many electronic money products are also, unlike cash,
traceable to the payor. For a comprehensive overview of e-money issues, see:

             gopher://gopher.cbo.gov:7100/11/reports/online
             (Emerging Methods for Making Electronic Payments)
             http://www.occ.treas.gov/emoney/papinf.htm


B. Money is Already Electronic
Large-value payments in the U.S. are already predominantly made by
electronic payment systems, developed by banks and the Fed at significant
expense and with well-established operating rules and legal frameworks.
According to the National Automated Clearing House Association, in 1995
$533 trillion was transferred by wire, $11 trillion by Automated Clearing
House and $800 billion by credit card, compared to $73 trillion by check
and $2.2 trillion in cash transactions. Electronic money is clearly
attractive as a substitute for cash and checks, but it is unclear whether
there are business reasons to develop new electronic money systems for
large-value payments rather than adapting the existing systems to stored
value card and Internet transactions.

[With this as a launching point, John Muller proceeds to discuss
various associated legal issues in the full article which is posted
on the JIBC Web site.]


=================
The Role of Check Images in Internet Banking: An Introduction
http://www.arraydev.com/commerce/jibc/9702-16.htm
=================
By  Madeleine Tausk
Madeleine Tausk is employed at Bank of America, NT&SA in San Francisco,
California as  Assistant Vice President/ Project Manager. Her projects focus
on check image technology implementations.  Ms. Tausk is also a candidate
for Doctorate of Business Administration at Golden Gate University in San
Francisco, California. Her focus is in the area of alternative delivery
mechanisms in Banking.
*****************

ABSTRACT:

In the JIBC, there is considerable discussion and articles that address
Electronic Banking and Commerce in general, but very few that present
information relative to specific products that may be available for consumers
and businesses over the Internet. The purpose of this article is to address
specifically one of those products, checks.

Statistics indicate that check volume is at a peak and continues to grow.
This trend is attributed to many factors. The question is, given that we will
have to continue to deal with paper checks, at least in the near future, how
might we integrate them into the non-traditional forms of banking? This
article suggests transforming the paper checks into electronic information,
or digitize them. Digital technology will not only offer integration of this
traditional payment form with alternative delivery systems, but it will also
enable more efficient processing of checks.

The future of alternative forms of banking looks promising and checks appear
to be in the equation for some time to come. Image technology provides the
opportunity to integrate these two in a harmonious relationship for the
banking customer.

***The information represented in the article does not reflect the opinions or
views of BankAmerica Corporation.***


================
The Internet Will Shake Banking's Medieval Foundations
http://www.arraydev.com/commerce/jibc/9702-01.htm
================
By Claus Nehmzow
Claus Nehmzow is a Principal in the Information Technology Group
in London at Booz Allen & Hamilton, the international management
and technology consulting firm. For further information on Booz
Allen, please e-mail Claus Nehmzow at Nehmzow_Claus@....
*******

...In 1996 the financial services group within Booz Allen
conducted two surveys of Internet banking - one in the USA and
one in Europe.

We conducted these surveys because our industry experience
indicated that banks were increasingly viewing the Internet as a
key alternative delivery channel. And because there was
insufficient information about current usage, growth projections
and the attendant strategic implications for the industry.

...The Survey Findings
What we found is that Internet banking will almost certainly
become a major fully-fledged distribution channel of banking
services and products in Europe within the next three years.
While current functionality is limited, 80 per cent of European
survey respondents said that they planned to upgrade their web
sites to facilitate most traditional banking transactions within
that period.

...our survey in Europe found annualised growth running at 90 per
cent, with a projection for more than 2000 European banking
institutions being on line by the end of the millennium.
Ultimately, we believe, all banks will have a web presence as the
cost advantages are so huge that there is no reason not to try it
out.

The cost of the average payment transaction on the Internet is
just 13 cents or less. This compares with 26 cents for a personal
computer banking service using the bank's own software, 54 cents
for a telephone banking service and one dollar eight cents for a
bank branch.

For the traditional players in the banking sector the technology
offers the opportunity to add a low cost distribution channel for
their myriad services. But it also poses a much more serious
threat to their market share, as it neutralises so many of their
competitive advantages of having a traditional branch network.

...It is inevitable, therefore that the banks' relationship with
its customers is going to have to be redefined, if their most
valued clients are not to be cherry picked by the new entrants.

=============
Taxing the Internet: The Proposal for a Bit Tax
http://www.arraydev.com/commerce/jibc/9702-05.htm
=============
By Arthur J. Cordell
Arthur Cordell is Special Advisor in the Information Technology
Policy Branch of the Canadian Department of Industry in Ottawa.
The Web article is the text of a speech delivered to the
International Tax Program at the Harvard Law School on February
14, 1997. The following excerpts suggest his reasons for
considering a Bit Tax and some of the likely impacts/responses.

* The views expressed are those of the author alone and are not
necessarily those of any department or agency of the Canadian
government.
***************
...Over two hundred years ago Adam Smith wrote his famous and
classic book-- the Wealth of Nations. He concluded that wealth
was based on division of labour and the extent of the market.
Today we can add something else to society's production function:
knowledge, information and communications.

The new wealth of nations is to be found in the trillions of
digital bits of information pulsing through global networks.
These are the physical/electronic manifestation of the many
transactions, conversations, voice and video messages and
programs that, taken together record the process of production,
distribution and consumption in the new economy.

In this new wealth, in this new productivity is a new source of
revenues for governments. I believe that the digital information
that is providing so much of the new wealth also provides a way
for us, through our governments, to get at some of the productive
potential of the emerging knowledge-based economy.

What happens to the productivity gains created by global digital
networks? Some gains show up in profits, some show up in lowered
prices, some goes to domestic labour and some to domestic
capital--some is 'lost' in the networks. In some cases off-shore
capital benefits from productivity advances.

While part of the increased productivity may show up in earnings
to firms adopting the technology, to banks, to telecom firms or
other network operators, it appears that some of the productivity
gains just disappear. It is either a non-monetary item (eg., time
saved in using ATMs for banking) or the productivity is diffused
over so many domestic and foreign players that it is not
appropriated effectively, if at all.

The challenge is to access the new productivity. There is a
strong case to be made that government has not yet accessed the
new wealth. That government has not yet realized where and how
wealth creation is taking place. That government has not yet
figured out a way to tax and re-distribute some of the new wealth
created by global digital networks. That government has not
figured out a way to stop the tax haemorrhaging taking place as
more and more transactions take place on global networks, as more
and more wealth is created on global networks.

It is important that the new wealth, the new productivity be
accessible by governments, so that government can perform its
traditional functions. So that the advanced countries can
maintain hard-won standards of living. So that the less-
developed countries can advance and grow as well.

(He describes elements of a possible Bit Tax.)
...Experts tell me that the proposed bit tax can be implemented
in a relatively simple way. Automatic collection of taxes,
distributed automatically to the appropriate government--all put
in place by building on the software already being operated by
the carriers. A well-defined tax base, one that is growing. A tax
that can be collected cheaply and simply. A system that will have
built in security and auditing--safeguards to ensure system
integrity.

...Those who argue most strongly against the bit tax are those
who would like to lessen the powers of the state. They would like
to 'wrestle the state to the ground.' They see the bit tax as a
sort of stealth tax. To this group I can only offer the quote of
US Supreme Court Justice Oliver Wendell Holmes, Jr., who wrote in
a decision in 1904 that 'Taxes are what we pay for civilized
society.'

...The thorny issues of income, jobs and taxation are all part of
the major changes underway as we move to a New Economy or
Information Economy or Knowledge Economy. Call it what you will.
By whatever name, it is clear that we are facing a major change
in our economies. The change will not be easy or smooth. An
orderly transition to the new economy will take discussion,
dialogue, good-will and new ways of measuring and understanding
economic activities.

So the bit tax itself is just a modest beginning. But as a modest
beginning, the bit tax can help provide the new fiscal framework
to distribute the productivity of the new economy. How the new
revenues might be spent is, of course, to be determined by the
government of the day. But in my view new sources of revenues can
be used for schools, parks, and health care. New revenues can
re-train some for new jobs and, for those who can not be
retrained the revenue can provide a continuing flow of income
that allows displaced workers to maintain their dignity-- and
their purchasing power--in the new economy. One way to maintain
effective demand in our economies, one way to avoid economic
collapse is to capture some of the productive capacity and
re-direct it back to consumers.

However governments decide to use the new revenues, it is clear
that the bit tax offers one way for the productive power of
information technology to bring with it a New Wealth of Nations.

I know that I may not have convinced all of you of the concept of
a bit tax. To those who are sceptical of the bit tax, I hope that
I have least convinced you of the need to begin a discussion on
the need for new taxes that are appropriate for a new economy, a
global knowledge-based economy based on digital networks.

==============
Critique on the 1994 EU Report on Prepaid Cards
http://www.arraydev.com/commerce/jibc/9701-16.htm
==============
By Ian Grigg
Email: iang@...

(Editor's Note: This abstract was posted in Volume 2 No 1 and
inadvertantly omitted from the January email edition. We remind
readers and authors that articles are published on the Web site
immediately on approval, and the email edition provides brief
abstracts or excerpts of articles published in the preceeding two
months.)

Contributing Editor Robert Hettinga asked Mr. Grigg for a brief
summary of his critique of the 1994 EU report on Prepaid Cards.
Ian took this as a sign that the critique needed an abstract,
which he submitted as follows. The entire critique is at
http://www.systemics.com/docs/papers/1994_critique.html
***********
Abstract: The European Union report of 1994 reserves the issuance
of Prepaid Cards to banks. Comments have indicated that the
conclusions of this report should be expanded to include Internet
cash, and it is believed that a committee under the auspices of
the EMI has been given that mission.

This approach would be valid if the conclusions in the 1994
report were valid, and there was sufficient relationship between
the prepaid card and Internet cash to support this extension. It
is argued that neither is the case, and thus there is little
validity in simply extending the 1994 report. Rather, a fresh
approach is called for with respect to Internet cash.

With due consideration given to the pressures upon the
institution of central banking, it is argued that only a policy
of minimal regulation is likely to be structurally practical.
Thus the imperative is on establishing a dialogue with the new
financial intermediaries, and encouraging the development of
simple, open and transparent structures suitable for public
monitoring.

In the event of attempts to stifle financial innovation for the
sake of control, authorities will be ignoring the changing face
of the intermediation industries, and rightly or wrongly, are
likely to build a structure at odds with the future. It is argued
that, whilst there is little chance of this structure surviving
in the long term, its construction and downfall is likely to have
negative effects in the medium term for Europe and European
industry.

=================
The Internet: A Challenging Competitive Weapon for Improving
Industrial Companies' Performance is Emerging
http://www.arraydev.com/commerce/jibc/9702-10.htm
=================

By George J. Avlonitis
    Email: avlonitis@...
    URL: http://www.aueb.gr/marketing/avlonitis.htm

and Despina A. Karayanni
    Email: karayanni@...
    URL: http://www.aueb.gr/karayanni/resume.htm

George J. Avlonitis is Professor of Marketing in the Department
of Management Science and Marketing in the Athens University of
Economics and Business.

Despina A. Karayanni is a Doctoral Researcher in the Department
of Management Science and Marketing in the Athens University of
Economics and Business.

This article discusses a report on "Work in Progress"  which can
be found at http://www.aueb.gr/karayanni

************************
...A study being carried out at the Athens University of
Economics and Business ... aims to investigate the new strategies
followed by the industrial companies that have already included
(Internet) technology in their development, as well as to
evaluate the effectiveness of these strategies.

The data were collected from 78 industrial goods companies,
mainly from the USA (10.4% response rate). Analysis of the data
have resulted in the following important findings and
implications:

Findings

1) The top management of the industrial companies of our sample
use Internet in all the activities related to the successful
commercialisation of their products, regardless of the company
size or the product complexity.

2) The company size doesn't constitute a decisive factor for the
differentiation of the business strategies. However, it appears
that the smaller companies tend to pursue the Market Expansion
Strategy at a higher degree, showing a more aggressive use of
Internet, through a more aggressive promotion strategy that
places emphasis on product benefits.

3) As far as the product complexity is concerned, companies with
simple or relatively simple products show a greater inclination
to the strategic goal of Market Share Increase through the use of
Internet. It appears that Internet favours the simple products,
or the simple buying processes. Nevertheless, the complexity
doesn't seem to affect the Internet Strategies that refer to both
the successful product commercialisation and the sales force task
that relates the customer needs with the companies' products. The
research verified that companies with complex products tend to
use Internet for the development of new products via
collaboration with other actors of the market (suppliers,
clients, universities, organisations, institutes, etc.).

4) Through the use of Internet the functional integration within
the marketing department is facilitated, namely the co-ordination
of the sales, promotion and logistics departments. In addition,
the interdepartmental (marketing, production, finance)
co-operation is facilitated, with the aim to:
      * enhance the customers' loyalty,
      * accelerate the development of innovations and
      * enhance the effectiveness of the sales force.

5) Strategies involving Internet in the Marketing function
favour:
      * the application of the value added chain concept, both
      upstream to the customers and downstream to the suppliers,
      * the pursuit of the strategic goal of market expansion via
      the institution of strategic alliances and the
      * integration of the whole spectrum of companies' functions,
      in an effort to enhance the quality service offered to the
      customers, thus applying the concept of the Total Quality
      Marketing.

6) According to the results, the contribution of Internet to the
companies' sales force is translated to increasing responsibility
in the execution of the strategic marketing plan. The new
generation of salesmen should be more educated and qualified, in
order to use this new technology, for gaining market knowledge,
which combined with their experience will allow them to:
      * increase customers' loyalty
      * monitor new market segments and new markets
      * successfully relate the customer needs to the companies'
        capabilities.


7) In the present phase of the Internet diffusion among the
industrial companies, the intensity of its use is highly related
with the companies' performance. More specifically, the use of
Internet improves the companies' efficiency, due to :
      * more efficient customers' prospecting
      * more efficient customer portfolio management
      * reduction of the advertisement budgets

Implications

The above findings have some useful implications for both the
providers and the state:
a) The encouragement of the Internet adoption via the
establishment of a carefully set designed pricing policy by the
Internet providers would accelerate the diffusion of this new
technology to theritical mass of industrial companies. Indeed, so
long as thesuppliers' strategy affects the diffusion of
innovations in theindustrial markets, the providers should deploy
an appropriate pricing strategy, based on algorithms, that will
encourage the use of Internet. Nevertheless, as many researchers
suggest, in the long run, which coincides with the maturity stage
of the Internet life-cycle, a pricing system that is based on the
frequency of use, is more appropriate, in order to avoid the
network overloading and traffic jams.

b) Being in alignment with other numerous reports about Internet,
we should stress the need for improvement of the network lines,
on the ground that this would improve the information bandwidth
of the companies. At the same time, the formation of special
international commercial and privacy standards to guide the
electronic commercial behaviour, coupled with the application of
encryption methods (public key encryption and electronic
signatures), that would solve much of the Internet security
problems, are essential, in order for the diffusion of the
commercial use of Internet to be accelerated. However, the
research have shown that the above "defects" of Internet do not
constitute essential factors that restrict its use. The vast
majority of the companies reported that the greatest disadvantage
of Internet was its limited commercial use, since, by definition,
the diffusion of the interactive technologies is on a par with
the creation of the critical mass of the users.


=====================
Wholesale Finance, A Model for Electronic Commerce
http://www.arraydev.com/commerce/jibc/9702-13.htm
=====================
By Davide Khalil
Discrete Arbitrage Nine LLC
Email: <nine@...>
Davide Khalil isa Partner in Discrete Arbitrage Nine; Financial Systems
architect for transaction automation in over 30 global banking and
financial institutions including: (NYSE, SIAC, NASDAQ, Merrill Lynch,
Salomon Brothers, Chase Bank, Scotia Bank, Royal Bank of Canada,
Reuters, Mitsubishi, SSangYong Korea, Westpac Bank, SunGard & BondNet).
***************
A paper published at http://www.discretearb.com/paper.html
outlines a wholesale financial protocol and how it will impact
global banking and financial automation.  The study is based on
FIX, (Financial Information Exchange) which is currently used for
trading, risk management and reporting for a variety of financial
instruments by 150 global financial institutions.  Since the
standard includes trading and settlement of Foreign Exchange, it
is also an existing "electronic cash" format which
is accepted by some of the largest banks in the world.  The paper
looks at the future of such wholesale financial protocols for
electronic commerce and how they re-define global finance.  For
this it uses projections from when finance evolved from telegraph
transactions to the telephone 100 years ago and how this impacted
liquidity and complexity in the financial markets.



(END OF JIBC Vol 2 No 2, Part 1 of 2, March, 1997)

Journal of Internet Banking and Commerce
June 1998, vol. 3, no. 2
http://www.ARRAYdev.com/commerce/JIBC/current.asp




=============
Table of Contents
=============



Editorial (Gordon Jenkins)
http://www.ARRAYdev.com/commerce/JIBC/9806-ed.htm




>From Our Contributing Editors

Purse Wars - What does the front line look like?(By Dave Birch)
http://www.ARRAYdev.com/commerce/JIBC/9806-02.htm

The Wallet Connection (By Stephanie Denny)
http://www.arraydev.com/commerce/JIBC/9806-03.htm

The Legal Report (By Richard L. Field, Esq.)
http://www.ARRAYdev.com/commerce/JIBC/9806-16.htm

E-Comm-AWARE!
E-commerce awareness program for regional communities(By Mary-Anne
Goldsworthy)
http://www.ARRAYdev.com/commerce/JIBC/9806-13.htm

Performance Report - June 1998 (By Carlos Moreira )
http://www.ARRAYdev.com/commerce/JIBC/9806-15.htm

The Experience of the NUOVA BANCA DI CREDITO DI TRIESTE with Electronic
Commerce (part 2/3) (By Miran Pecenik)
http://www.ARRAYdev.com/commerce/JIBC/9806-12.htm

Smart Cards In America: Think Globally, Act Locally (By Scott Smith)
http://www.ARRAYdev.com/commerce/JIBC/9806-11.htm




Feature Articles

France's blanket ban on the use of strong encryption (By Samuel Cadogan)
http://www.ARRAYdev.com/commerce/JIBC/9806-19.htm

Web Banking in USA(By Eduardo Diniz)
http://www.ARRAYdev.com/commerce/JIBC/9806-06.htm

Identifying Potential Customers for On-line Financial Services
(By Sridhar N. Ramaswami, Troy J. Strader and Karen Brett)
http://www.ARRAYdev.com/commerce/JIBC/9806-05.htm

Nothing Fails Like Success: Online Growth In The Offshore World
(By Arthur J. Cordell)
http://www.ARRAYdev.com/commerce/JIBC/9806-08.htm

Collaborating in Cyberspace: A Case Study of Computer-Mediated
Communication Among 100 Scholars in 15 Countries
(By Marcel Allbritton and Elias G. Carayannis)
http://www.ARRAYdev.com/commerce/JIBC/9806-07.htm



The Best of...

Tasty Bits from the Technology Front (TBTF) (By Keith Dawson)
http://www.arraydev.com/commerce/JIBC/9806-17.htm

Excerpts from "INNOVATION" (By John Gehl and Susan Douglas)
http://www.ARRAYdev.com/commerce/JIBC/9806-04.htm

Hettinga's Best of the Month (From Robert Hettinga)
http://www.ARRAYdev.com/commerce/JIBC/9806-14.htm



Book Reviews

"Self-Defense and Common Sense in Cyberspace"
Review of Daniel S. Janal's Book - Risky Business: Protect Your
Business from Being Stalked
(By Walter A. Effross)
http://www.arraydev.com/commerce/JIBC/9806-09.htm



Call for Papers

Call for Papers: Regulation of Electronic Commerce
The Administrative Law Review, American Bar Association's Section on
Administrative Law and American University's Washington College of Law
http://www.arraydev.com/commerce/JIBC/9806-18.htm


Advertisement


Annoucement


Administrative Notice


Circulation



=================
Editorial (Gordon Jenkins)
=================

The JIBC is a unique publication. We have the majority of the
original contributors who started with us three years ago in
January 96. We add new ones every issue. In this Edition we
are pleased to welcome Stephanie Deny and Walter Effross.
Please have a look at their contributions. "I would also like to
welcome Keith Dawson and "Tasty Bits" to our section " The Best of…."

Contributions is the appropriate word . We are a "word of mouth"
publication , we are "not refereed " - yet we are quoted and
considered one of the " blue chip " Journals of the Internet.

If you enjoy us , please tell your friends. If you dont or have a
comment please sign our guest book or email me. Enjoy!

Gordon Jenkins
Editor
http://www.ARRAYdev.com/commerce/JIBC/9806-ed.htm

Journal of Internet Banking and Commerce
October 1997, vol 2, no. 4

Links to the complete text of articles are at:
http://www.arraydev.com/commerce/jibc/current.asp

=======
Editorial (By Gordon Jenkins)
http://www.arraydev.com/commerce/jibc/9704-ed.htm
=======

=======
Feature Articles
=======
* Electronic Commerce: A New Economic and Policy Area
(By Georges Ferné)
http://www.arraydev.com/commerce/jibc/9704-08.htm

* Securing E-Commerce: A Systematic Approach
(By Anup K. Ghosh,  Ph.D.)
http://www.arraydev.com/commerce/jibc/9704-04.htm

* The Entry Barrier is Collapsing, But What Do We Do Next?
(By Jianmang Li)
http://www.arraydev.com/commerce/jibc/9704-03.htm

* Study of Consumer Interest in Cheque Imaging
(By Madeleine Tausk and  Carol  Watson)
http://www.arraydev.com/commerce/jibc/9704-26.htm

*Internet Banking in Australia
(By Dr. M. Sathye)
http://www.arraydev.com/commerce/jibc/9704-27.htm


========
Special Section of Articles related to
UNCTAD Conference on Internet Security
========
*The UNCTAD Trade Efficiency Initiative Promotes the Development of
Electronic Cmmerce in China (By Jianzhong Lu)
http://www.arraydev.com/commerce/jibc/9704-28.htm

*The United Nations Secure Infrastructure for Electonic Commerce
(By Carlos Moreira)
http://www.arraydev.com/commerce/jibc/9704-02.htm

*Expert Meeting on Telecommunications
http://www.arraydev.com/commerce/jibc/9704-31.htm

*Survey Results
http://www.arraydev.com/commerce/jibc/9704-10.htm

*Press Release
http://www.arraydev.com/commerce/jibc/9704-15.htm

========
  From Our Contributing Editors
========
*Over the Water: The View from the UK (By David G.W. Birch)
http://www.arraydev.com/commerce/jibc/9704-29.htm

*The Legal Report (By Rich Field)
http://www.arraydev.com/commerce/jibc/9704-01.htm

*Innovations (By John Gehl and Suzanne Douglas)
http://www.arraydev.com/commerce/jibc/9704-05.htm

*The View from Down Under (From Mary-Anne Goldsworthy)
http://www.arraydev.com/commerce/jibc/9704-25.htm

*Hettinga's Best of the Month (From Robert Hettinga)
http://www.arraydev.com/commerce/jibc/9704-06.htm

*To Push or Not to Push (By Miran Pecenik)
http://www.arraydev.com/commerce/jibc/9704-09.htm

*Securing the Consumer (By Scott Smith)
http://www.arraydev.com/commerce/jibc/9704-07.htm

========
Conference Notices
========

*Call for Participants, FC'98
http://www.arraydev.com/commerce/jibc/9704-21.htm

*Proceedings from FC'97
http://www.arraydev.com/commerce/jibc/9704-30.htm

========
Administrative Notices
========

End of TOC


******************************************************
Editorial

By Gordon Jenkins
Email: jenkins@...

We have been chosen by Carlos Moreira , Head of the United Nations
Tradepoint Development Centre (UNTPDC) of UNCTAD to be the Official
Publication of the United Nations Conference on Secure Infrastructure
for Electronic commerce , Oct 30th and 31st in Melbourne Australia.
We wish Carlos , a regular contributor , good luck on this timely
Conference.

We have a good cross section of articles both from a organizational,
regional and subject matter.  For example there are excellent
articles from the OECD,
India and banking. More of all three will be added in
the future edition in January 98.

We have numerous new contributors as well as our regular contributors
-
most of whom have been with us since our first edition - almost two
years ago. To our regulars - a thank you. To our new contributors -
welcome. And to our readers- enjoy.

Gordon Jenkins
Editor


=========
Electronic Commerce: A New Economic and Policy Area
http://www.arraydev.com/commerce/jibc/9704-08.htm

By Georges Ferné
Email: Georges.FERNE@...

Georges Ferné has been with OECD since the late 1960s, working on
a number of science and technology related questions, including
Information Technology Development Policies, University/Industry
Research Policies, Social Sciences Policy, etc. His recent work has
addressed questions relating to the economics of the information
society, including standardisation in information and communications
technologies, case studies on the impacts of information technologies
on employment, and opportunities and challenges of electronic
commerce. He is currently involved in policy analysis of the systemic relations
between innovation and intellectual property rights at international
level. Georges Ferne is the Executive Secretary of the International
Council for Science Policy Studies (ICSPS), a body under the aegis of
ICSU.
*  *  *  *  *  *  *

The 'Sacher Report' ("Electronic Commerce: Opportunities and
Challenges for Government", OECD, Paris, 1997, ISBN 92-64-15512-0),
which the OECD has just published, assesses current developments in electronic
commerce and presents a new aspect of the issue by setting out
priorities for government action. Its originality is derived from the fact that
it expresses the point of view of senior executives from twenty major
international firms in retail distribution, banking and finance,
food, automobile, chemic als and multimedia, all leading users of
electronic commerce. The group, an ad hoc body chaired by John
Sacher, Executive Director of leading UK retailer Marks and Spencer, was invited
by the OECD to compile this independent report.

=======================
Securing E-Commerce: A Systematic Approach
http://www.arraydev.com/commerce/jibc/9704-04.htm

By Anup K. Ghosh, Ph.D.
Research Scientist, Reliable Software Technologies
www.rstcorp.com/~anup
aghosh@...

Anup K. Ghosh is a Research Scientist with Reliable Software
Technologies (http://www.rstcorp.com). His research focus is in
developing and applying software analysis techniques to problems in
computer security. Dr. Ghosh is a principal investigator on research
grants from DARPA and Rome Laboratory.

Dr. Ghosh is a noted speaker, consultant, and author on e-commerce
security. He has recently completed a book on E-Commerce Security to
be published by John Wiley & Sons in January 1998.
*   *  *  *
Introduction

Electronic commerce, or simply e-commerce, is changing the way in
which banks and consumers interact and transact. E-commerce provides
consumers the ability to bank, invest, purchase, distribute,
communicate, explore, and research from virtually anywhere an Internet
connection can be obtained.

Given the explosive growth of the Internet, most e-commerce providers
are migrating from proprietary networks and dial-up servers to the
Internet in order to capture larger market shares. The World Wide
Web, or simply the Web, has become the vehicle of choice for
conducting commerce over the Internet because of the user-friendly and rich
multi-media interface provided by Web browsers.

======================
The entry barrier is collapsing, what to do next?
http://www.arraydev.com/commerce/jibc/9704-03.htm

By Jianmang Li
MBA, The Nijenrode University(the Netherlands Business School),
Breukelen,
The Netherlands
Email: J.Li@...

Jianmang Li studied theoretical physics in university when he was 13.
He had spend 13 years in nuclear energy research field. Last year he
went back to university for a MBA degree. Currently he is doing a
project in ABN-AMRO Bank for his MBA thesis. The subject of the project is
the strategic issues of Internet banking.
*  *  *  *  *
Michael E. Porter, the prominent figure in the business strategy
field, suggested that there are five competitive forces that tend to
drive down the profitability of an industry. One of these forces is the
threats of new entry. New entrants bring new capacities into the industry
which in turn drive down the profitability of the industry. In order to
protect their long term profitability, the industry incumbents have
to build up entry barriers. Without entry barriers, no industry can earn
sustainable high returns.

What is the current entry barrier of retail banking? Is it the
economies of scale? There is no enough evidence to support that large
banks enjoy cost advantages over small ones. Look at the annual reports of
three major Dutch banks ( ABN-AMRO: $300 billion balance sheet assets, ING
Bank: $150 billion and Rabobank: $160 billion), the major costs are
stuff costs which are the direct variable costs. The depreciation
charge of fixed assets, which is the major source of economies of
scale, is only around 7% of the total costs in all three banks. Is it the
product differentiation? The answer is no. Most of the products sold
in retail banking are as old as the industry. No much room is left to
differentiate those commodity type of products. Is it the government
regulation? Partly true, but that barrier had been lowered
considerable during 80s banking deregulation in all industrialized
countries. Is it the banking know-how? Partly true, however this barrier is not
very high. Is it the brand name? Yes, it is the only significant entry
barrier of retail banking.

=======================
Study of Consumer Interest in Cheque Imaging
http://www.arraydev.com/commerce/jibc/9704-26.htm

By Madeleine H. Tausk and Carol A. Watson
MHTAUSK@...
Carolw@...

Madeleine Tausk is employed at Bank of America, NT&SA in San
Francisco, California as Assistant Vice President / Project Manager.
Carol
Watson and Ms. Tausk are both candidates for Doctorate of Business
Administration at Golden Gate University in San Francisco,
California.

*   *   *   *
EXECUTIVE SUMMARY

ISSUE:

The purpose of this research paper is to examine if there is market
demand from retail customers to view pictures of their paid checks
through alternative delivery mechanisms.

CONCLUSION:

Our research communicated that retail banking customers are
interested in receiving check photos through alternative delivery
mechanisms. They are willing to pay a fee of $2.00 or less for this service.

======================
Internet Banking in Australia
http://www.arraydev.com/commerce/jibc/9704-27.htm

By Dr. M. Sathye
URLwww.usq.au
Email sathye@...
Milind Sathye is Lecturer, Department of Banking and
Finance, University of Southern Queensland, 4350, Australia, and
formerly
Assistant Director
Commonwealth Treasury, Canberra Australia.

*   *   *   *
After the release of the Wallis Inquiry into the Financial System in
Australia and its acceptance almost in full by the Commonwealth
Government, competition is now fierce in the banking industry in
Australia. One of the main areas of competition in the days ahead
will be Internet banking. Hence this article surveys the status of
Internet banking in Australia as it stands today and suggests ways for
Australian banks to forge ahead in this upcoming field.

===========================
Special Section of Articles related to
UNCTAD Conference on Internet Security

*The UNCTAD Trade Efficiency Initiative Promotes the Development of
Electronic Commerce in China (By Jianzhong Lu)
http://www.arraydev.com/commerce/jibc/9704-28.htm


*The United Nations Secure Infrastructure for Electonic Commerce
(By Carlos Moreira)
http://www.arraydev.com/commerce/jibc/9704-02.htm

*Expert Meeting on Telecommunications
http://www.arraydev.com/commerce/jibc/9704-31.htm

*Survey Results
http://www.arraydev.com/commerce/jibc/9704-10.htm
*Press Release
http://www.arraydev.com/commerce/jibc/9704-15.htm


========================
  From Our Contributing  Editors
========================

The Impact of E-Cash: More questions than answers
http://www.arraydev.com/commerce/jibc/9704-29.htm

By Dave Birch
Email:daveb@...
Hyperion http://www.hyperion.co.uk

We shouldn't get too carried away with the idea that the Net is going
to be lawless just because we dont fully understand it, but we do have
to be cognisant of the real changes it will bring. Electronic cash
(e-cash) brings this challenge into sharp focus. Its fair to say that
the whole subject of e-cash is still very new and therefore noone really
knows what impact it might have, but its also a topic that will receive
regulatory attention in the nottoodistant future so some reasonable
discussion of likely impact is appropriate. I dont detect any rush to
regulateregulators have a natural desire to want stability and to
prevent systemic problems, but recognise that premature regulation
might prevent valuable developments in a technology capable of
boosting trade and prosperitybut its time to begin the debate. As good a
framework as any would be to take the points raised by Stephen Kobrin, born of
a discussion about electronic money at the 1997 World Economic Forum in
Davos, and use them to delineate the discussion.

=====================
The Legal Report
http://www.arraydev.com/commerce/jibc/9704-01.htm

By Richard L. Field, Esq.
field@...

Mr. Field is a U.S. attorney specializing in payment systems and
electronic commerce. He chairs the Electronic Commerce Payment
Committee of the American Bar Association, Section of Science and
Technology, and is an Affiliated Research Fellow of the Institute for
Tele-Information at Columbia Business School. Mr. Field has served as
a U.S. delegate-adviser to the United Nations Commission on
InternationalTrade Law, Working Group on Electronic Commerce.

I prepared the following paper as an brief educational guide for the
U.S. National Conference of Commissioners on Uniform State Law,
Drafting Committee on Electronic Contracting. It categorizes and
distinguishes the various electronic signature technologies, and suggests that
legislators recognize these differences.

The Drafting Committee on Electronic Contracting has begun to
consider model state legislation in the U.S., with the goal of better
enabling the use of digital signatures and other electronic communications and
records, and of harmonizing the law. Its efforts have been endorsed
in the Clinton administration's recent White Paper report, "A
Framework for Global Electronic Commerce."

My thanks to Robert Jueneman of Novell for his technical assistance.

=====================
The Innovations Column
http://www.arraydev.com/commerce/jibc/9704-05.htm

By Contributing Editors John Gehl and Suzanne Douglas These items are
from Innovation, a NewScan Service, written by John Gehl
and Suzanne Douglas.

They report on trends, strategies, and innovations in business and
technology to give their readers an executive briefing on the future.
For free trial subscription send mail to innovation-trial@...
with the word "subscribe" in the Subject line.

========================
The View from Down Under
http://www.arraydev.com/commerce/jibc/9704-25.htm

By Mary-Anne Goldsworthy
Executive Officer
Centre for Electronic Commerce
Monash University Gippsland Campus
Churchill Victoria
AUSTRALIA 3842
Email: cec@...
Web Page: http://www-cec.buseco.monash.edu.au

Mary-Anne Goldsworthy has forwarded two articles from The Australian
Financial Review
for this edition.

====================
Hettinga's Best of the Month
  From Contributing Editor Bob Hettinga
Email: rah@...

URL: The e$ Home Page
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." --
Edward Gibbon,
'Decline and Fall of
the Roman Empire'


Date:         Mon, 1 Sep 1997 12:45:15 -0400
Reply-To:     Law & Policy of Computer Communications

Sender:       Law & Policy of Computer Communications

From:         "Dan L. Burk"
Subject:      Re: Domain names and trademark -Reply
To:           CYBERIA-L@...

====================
To Push or Not to Push
http://www.arraydev.com/commerce/jibc/9704-09.htm

By Contributing Editor Pecenik Miran Pecenik Miran is the chief of
the Information and Communication Technology (and also Webmaster) in the
Nuova Banca di Credito di Trieste - Nova trzaska kreditna banka.

In the last two years he has published many articles about the Web on
italian and canadian newspapers and his work was mentioned in dozens
of articles on financial and Internet magazines, on television and on
an italian national teletext. Overall he increased the popularity of the
bank with over 700 links all around the world.

He has spoken in various meetings, organised by the principal italian
banking corporates, such Abi, Ipacri and Istinform. In 1996 he worked
on a questionnaire of the use of Internet in Italy (nowadays the
biggest in Italy, with 1700 answers) and had organised the first italian
elections on the Web. In 1997 he tested the push technology with a
group of 700 people.

e-mail: miran@...
URL: http://www.nbctkb.it/index_e.htm

Translation by Michele Clara
*   *   *    *   *   *
During the summer of last year I participated to the design of a
questionnaire on the use of the Web in Italy together with Giovanni
Montana, a student at the University of Palermo. To stimulate
participation, I launched Netzapping, a free-of-charge service
whereby the latest news on a range of selected topics were delivered
by e-mail. Whoever completed the questionnaire was granted the
opportunity to select ten topics/sites of interest within a pre-set range.
Netzapping was activated in November and lasted for nine months. 778
people (from whom we didn't collect personal details) participated to this
experiment. They belonged to the most different categories of
Internet users ranging from university students to webmasters, from
professionals to senior personnel in the banking and computer
industry.

======================
Securing The Consumer
http://www.arraydev.com/commerce/jibc/9704-07.htm

By Contributing Editor Scott Smith
Principal Analyst - Internet Commerce
Current Analysis, Inc. Email: scott@... URL:
http://www.currentanalysis.com
Voice: (703) 404-4169
Fax: (703) 404-9300

Over a year ago now, I wrote an editorial for a publication on
electronic commerce urging the parties who had the most to gain - and
lose - from consumer commerce on the Internet not only to settle
their differences over which blueprint for transaction se curity they
would use, but to move quickly to use their position as trusted
intermediaries to assuage consumer fears. Several weeks later, Visa
and MasterCard and their respective technology supporters announced the Secure
Electronic Transaction (SET) pro tocol, and rosily predicted a
roll-out sometime in 1996.

==========
Conference Notices
==========

             C A L L F O R P A R T I C I P A N T S
http://www.arraydev.com/commerce/jibc/9704-21.htm

Financial Cryptography 1998 (FC98):
The world's only financial cryptography conference, exhibition, and
workshop.

FC98 Conference
February 23-26, 1998

FC98 Exhibition
February 23-27, 1998

FC98 Financial Cryptography Workshop
March 2-6, 1998

The Inter-Island Hotel
Anguilla, BWI

====================
FC'97 Conference Papers
http://www.arraydev.com/commerce/jibc/9704-30.htm

Rafael Hirschfeld (Ed.)

Financial Cryptography

First International Conference, FC '97
Anguilla, British West Indies, February 1997

Editor's note:

The following are abstracts of papers presented at the Financial
Cryptography '97 conference held in Anguilla, BWI in February 1997.
The full papers are published in proceedings form as Volume 1318 of
Springer-Verlag's Lecture Notes in Computer Science (LNCS) series.
The preface of the proceedings volume is also included. All material
is copyright (c) 1997 by Springer-Verlag. All rights reserved.

The book has ISBN 3-540-63594-7. If you would like to obtain a copy
of the book, it can be ordered from a bookstore or directly from
Springer-Verlag. Orders from Springer can be placed via email to the
address orders@... or orders@....

==============
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_____________________________________________________________

          JIBC-ONLINE: An Electronic Discussion Framework
                 for Internet Banking/Commerce Issues

                Gordon Jenkins         Nahum Goldmann
                Editor, JIBC           ARRAY Development
________________________________________________________________

We invite you to participate in online discussions related
to the type of banking and commerce issues addressed in the Journal
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=========================
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=========================

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===================
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===================

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As requirements and preferences for email and Web access may vary,
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=====================
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=========================
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=========================

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Nahum Goldmann (Nahum.Goldmann@...) is a leading
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a lecturer, a researcher in computer-based training, and an author of
critically acclaimed books on Internet/Web business applications.
ARRAY Development (http://www.ARRAYdev.com/) helps businesses, public
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==========
DISCLAIMER
==========

ARRAY Development is neither responsible for nor
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A short version of the last email edition of the Journal of Internet
Purchasing (JIP -- http://www.arraydev.com/commerce/JIP/) is sent to the
subscribers of the Journal of Internet Banking and Commerce (JIBC), Journal of
Internet Marketing (JIM) and Journal of Internet Security (JISec).


Journal of Internet Purchasing
April 1998, vol. 2, no. 1
http://www.ARRAYdev.com/commerce/JIP/current.asp


----------------------------------------------------
Table of Contents
----------------------------------------------------

Editorial (Fred Sollish)
http://www.arraydev.com/commerce/JIP/9801-ed.htm


>From Our Contributing Editors

Increase your Profit Margin through Electronic Procurement (By Chia Chin
Nam, C.P.M.)
http://www.ARRAYdev.com/commerce/JIP/9802-01.htm

News From the North (By Michael Asner)
http://www.ARRAYdev.com/commerce/JIP/9802-05.htm


Feature Articles

The Future of InterBusiness Commerce (By Mark Hoffman)
http://www.ARRAYdev.com/commerce/JIP/9802-02.htm

New Trends in Internet Commerce (By Mark Atlas)
http://www.ARRAYdev.com/commerce/JIP/9802-03.htm

The Role of System Integrators in Electronic Commerce (By Karen Clothier)
http://www.ARRAYdev.com/commerce/JIP/9802-04.htm


Announcement:  Electronic Forum for Internet Banking and Commerce !!!

Advertisement:  Hackers4Hire*=99 from CSCI Computer Security Canada Inc.

Advertisement:  The Sales Handbooks from Government Technology Press

Administrative Notice


------------------------------------------------------------------------------
Announcement:  Electronic Forum for Internet Banking and Commerce !!!
------------------------------------------------------------------------------

This is not only a warm welcome to all readers of the Journal for Internet
Purchasing but also an invitation to join in lively discussion and debate
with those of us dealing with the same electronic commerce opportunities
and issues which you face every day.  I have just been asked by Nahum
Goldmann, the JIP/JIBC Publisher, to take on the responsibility of
moderating the IBC Forum and would like to get the ball rolling with a
short introduction and some topics to prompt discussion (maybe even
controversy).

My background is firmly rooted in logistics, primarily procurement, with
most of my experience being in the Canadian federal public sector, both in
the business of actual procurement operations and that of corporate staff.
My last assignments involved the initiation, development and executive
direction of major electronic commerce initiatives.  As the members of this
forum well understand, this is not simply the application of technology,
but involves much more so the challenges of business process renewal and
change management. Since leaving the public service a little more than a year
ago, I have worked as a consultant in the areas of procurement and electronic
commerce. That has given me the chance to catch my breath and to recover from
some of those bad habits, aggressive tendencies, cynicism and paranoia that
project managers in the electronic commerce world all seem to share.  So
that is where I come from, that is what has led me to believe in the
tremendous process opportunities for electronic commerce which we can find
through using the Internet.

For the purposes of our discussion in the IBC Forum, we may want to follow
the life cycle of an electronic banking or electronic procurement
initiative.  Based on my experience, two of the initial, key aspects
surround transaction costs and performance measures.

There has been a preliminary discussion in this Forum about the cost of
representative transactions.  Surveys done in the private sector and the
public sector indicate that the average cost of a transaction (before the
application of electronic commerce tools and techniques), from commitment
of funds through procurement and then payment, seems to fall in the range
of $100 to $150.  Of course, that number is attacked in a very defensive
way by those involved in this very linear and bureaucratic (read stovepipe)
process.  This is an extremely difficult number to derive but it forces the
discovery of every little step in the process.  Often it is a shattering
revelation to those who have owned parts of that process.

Hence, my first question to the IBC Forum -- What experiences have you had
in ferreting out the cost of a transaction, how have you broken through the
barriers of the corporate accountingsystem, and how have you dealt with the
rumblings this caused?

Very much of a related issue is that of performance measures.  It is my
firm conviction that everyone says they want to be measured, but no-one
really means it.  The traditional processwhere we try to ascertain
transaction costs is one that undoubtedly rewards maintenance and expansion of
the status quo.  For example, the more transactions completed by central
purchasing the better.

As you know, this has to be turned around so that we reward and encourage
desired new behaviours, such as reduction in the number of contracts
awarded by central purchasing and corresponding increase in the number of
end user transactions satisfied by electronic catalogue orders.  Hence the
second question -- What performance measures would you advocate, or what
have you found to be particularly useful metrics in moving to closer
electronicbanking and commerce?

More to follow soon.  I look forward to meeting you during our discussions. Stop
lurking-don't be shy.  Yes, it's free.  You can subscribe to the IBC
Forum by pointing to:
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Steve Rollwage
Rollwage Associates
Email:  srollwage@...



-------------------------------------------------------------------------------
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-------------------------------------------------------------------------------

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-----------------------------------------------------------------------------
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For more information, call Lisa Thiel at 800/940-6039, fax 916/363-5197,
email: lthiel@...



-------------------------------------------------------------
Administrative Notice
-------------------------------------------------------------


-------------------------------------------------------------
Journal of Internet Purchasing
-------------------------------------------------------------

JIP is the leading edge publication which informs purchasing professionals
and executives on principal developments, benchmark practices, and future
trends in the world of Internet purchasing and government procurement. This free
online interactive journal is a way to keep in touch, to share
information, and to establish business contacts (networking) for worldwide
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In JIP you will find informed discussion of the latest purchasing trends
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want to maintain JIP as a service that provides substantial information
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JIP is formally issued every three months when an email summary of current
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JIP invites purchasing professionals, academicians and publishers to submit
important announcements, original articles, guest columns and significant
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The publication is complemented by the Compendium of Internet Banking and
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others will find interesting.  We also sponsor IBC-Forum which supports
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The Journal is maintained and published courtesy of ARRAY Development of
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Sollish, with any questions or comments by email at
sollish@... <mailto:
sollish@...>

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--------------------------------------------------------------------------------\
-
Sponsors/Advertisers Welcome
--------------------------------------------------------------------------------\
-

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-----------------------------
Copyright
-----------------------------

The Journal Of Internet Purchasing ISSN 1206-4890 is Copyright (C) 1997-98
by ARRAY Development, Ottawa, Canada.  All Rights Reserved.

Copyright of individual articles remains with the original author.
Commercial use or republication requires the author's permission.  Copying
is permitted for noncommercial, educational use by academic computer
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